Railway Stock alert: RVNL Shares up 6% amid winning Rs 554 Crore Bengaluru Suburban Rail Contract

The Shares of Railway PSU Stock, Rail Vikas Nigam Ltd surged 6.21% to reach a day’s high of Rs 354.25 on the BSE on Wednesday, February 19, following the company’s award of a Rs 554.47 crore contract from Rail Infrastructure Development Company (Karnataka) Ltd (K-RIDE) for the Bengaluru Suburban Rail Project (BSRP).

As per the filing made, the company has been awarded a Rs 554.47 crore contract from Rail Infrastructure Development Company (Karnataka) Ltd (K-RIDE) for Package C4A of the Bengaluru Suburban Rail Project (BSRP).

The contract involves the construction of nine stations under Corridor-4A of the BSRP. These stations will include one elevated and eight at-grade stations located at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, and Kaggadasapura.

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The scope of work covers civil and structural construction, entry/exit structures, steel foot-over bridges, roof structures, pre-engineered building (PEB) works, architectural finishes, and electrical and mechanical works.

The project completion timeline is 24 months and is part of a joint venture, with RVNL holding a 51% stake and Rithwik Projects Private Ltd (RPPL) holding 49%.

Brokerage analysis:

According to data from Trendlyne, the average target price for RVNL is Rs 357, which suggests a 1% downside from current market prices. The stock currently has a ‘Sell’ recommendation from two analysts. 

From a technical standpoint, RVNL’s Relative Strength Index (RSI) is at 37.3, which is nearing oversold territory (an RSI below 30 indicates oversold conditions). Additionally, the stock’s MACD is at -7.8, indicating a strong bearish trend as it is below both its signal line and center line. Furthermore, RVNL is trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

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