Railway PSU stocks rallies over 10% amid securing large order updates

Shares of Railway PSU stocks like RITES Ltd. and Rail Vikas Nigam Ltd. (RVNL) surged as much as 11% on Monday, November 25, as both companies reported updates to significant orders won by them. Last Friday, RITES informed the exchanges that it had won a major railway electrification order for the Limding-Badarpur line and received revised estimates for the order from the Northeast Frontier Railway.

The revised total cost for the order will now be Rs 531.7 crore, excluding GST, significantly higher than the previous value of Rs 288.44 crore. The value includes the Project Management Consultancy (PMC) fee.

Rail Vikas Nigam has received the Letter of Acceptance (LoA) from the Eastern Railway for “Earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, RUB, ROB, retaining wall, level crossing, side drain, catch water drain, P.way work and other ancillary works between Kalipahari and Pradhankhunta.

Read Also : Alok Kumar Sharma assumes charge as ED (NR-1), PowerGrid

The order has to be executed within the next 16 months and is valued at over Rs 837 crore, RVNL said in its exchange filing. This order, awarded to RVNL, is in consortium with SCPL, in which, RVNL is the majority shareholder with a 74% stake.

Shares of RITES are trading 10.2% higher at Rs 303.4. The stock has recovered 17% from its recent low of Rs 265.6, which it had made earlier this month.

Shares of RVNL are also trading 7.2% higher on Monday at Rs 450.35. The stock has also recovered from its recent low of Rs 408, which it had made on October 28.

Read Also : NABARD Relocates Andhra Pradesh Regional Office to Vijayawada: A New Chapter in Rural Development

In addition, Railtel also saw gains of almost 10% in the morning trades. RailTel in its recent release on the exchanges had announced having received the work order from the Central Medical Services Society (CMSS), Department Of Health And Family Welfare, and Ministry Of Health And Family Welfare for Manpower Outsourcing Services amounting to Rs. 9,93,08,100.

Meanwhile, Ircon International Ltd's share price also gained a good 7.5% in morning trades. IRCON informed the exchanges that Infomerics Valuation and Rating Private Limited, has assigned credit ratings of IVR AAA/ Stable (IVR Triple-A with notable Outlook)/ IVR A1+ (IVR A One Plus)credit rating for Bank facilities of the Company

 

Read Also : MGL join hands with Nawgati to drive CNG adoption among fleet operators