Rail Vikas Nigam Ltd RVNL Signs MoU with United Construction Limited, Israel
Rail Vikas Nigam Ltd (RVNL) witnessed a significant surge in its shares on the BSE, soaring by 9% to Rs 637.80. This rally followed the announcement of a Memorandum of Understanding (MoU) between RVNL and United Construction Limited, Israel. The stock bounced back by 12% from its intra-day low of Rs 569.80, indicating positive investor sentiment.
Exploring Cooperation Across Diverse Sectors
The MoU between RVNL and United Construction Limited is expected to drive cooperation in securing projects across multiple sectors. These sectors include Railways, Mass Rapid Transit System (MRTS), tunnels, roads, bridges, building works, airports, ports, irrigation, power transmission and distribution, as well as solar and wind energy infrastructures in Israel. This partnership signifies RVNL’s commitment to expanding its operations and sharing expertise in international markets.
Successful Arbitration Ruling for Krishnapatnam Railway Company
In a separate filing, RVNL announced that Krishnapatnam Railway Company Limited (KRCL), its joint venture company, secured a favorable arbitration ruling. The Hon’ble tribunal awarded KRCL a sum of Rs 5.84 billion in a dispute with the Ministry of Railways (MoR). This serves as a testament to RVNL’s strong legal standing and successful collaborations with MoR.
RVNL, encompassing its subsidiaries and joint ventures, plays a pivotal role in implementing various rail infrastructure projects assigned by MoR. Their involvement includes projects such as gauge conversion, new lines, railway electrification, major bridges, as well as workshops and production units. RVNL showcases its expertise by successfully constructing major workshops for Indian Railways and (is) simultaneously expanding its boundaries by venturing into securing rail infrastructure projects overseas.
Broader Scope: Nepal Infrastructure Projects
In addition to their endeavors in Israel, RVNL recently signed an MoU with IMS Consultancy Private Limited to offer technical and advisory services for various infrastructure projects in Nepal. This diversification highlights the company’s commitment to lend its expertise globally.
Robust Performance and Steadfast Growth
The shareholder confidence in RVNL has been reaffirmed with the stellar stock performance. In 2024 alone, RVNL’s market price has surged by nearly 250%. Over the past year, the stock has observed a remarkable incline of 430%. These gains easily outpaced the BSE Sensex’s increases of 12% and 21%, respectively, emphasizing RVNL’s consistent growth and its potential as an investment option in the infrastructure sector.
