RVNL shares surge 12% as order book hits Rs 65,000 crore

RVNL share price: Shares of Rail Vikas Nigam Limited (RVNL) rose as much as 11.86 per cent to hit an intraday high of Rs 281.45 on the BSE after the company in its recent investor call revealed the company's order book surged to Rs 65,000 crore.

The substantial figure is emblematic of RVNL's robust presence in the infrastructure sector, with an equal distribution of projects between railways and market-driven ventures.

Highlighting the composition of the order book, management disclosed that 50 per cent of the projects stem from railway nominations, while the remaining half originates from market-driven initiatives. Looking ahead, RVNL expects maintaining a healthy order book of approximately Rs 75,000 crore in the foreseeable future.

A major portion of RVNL's portfolio comprises projects such as the prestigious Vande Bharat trains, accounting for around Rs 9,000 crore, and various metro projects totaling Rs 7,000 crore. Additionally, the company has secured contracts in electrification, transmission lines, and other sectors, reflecting its diversification strategy.

Expanding its horizons beyond domestic borders, RVNL is actively pursuing opportunities in offshore markets, particularly in Central Asia, UAE, and Western Asia. The company's foray into international territories includes participation in a Public-Private Partnership (PPP) project in Botswana, where RVNL has been shortlisted, and the establishment of offices in neighboring countries to facilitate business operations.

In Central Asia, RVNL has made major strides, with projects in Kyrgyzstan garnering attention. The company has signed an MoU for four projects in the region and has taken concrete steps by forming a subsidiary, Kyrgyzindustry RVNL Close Joint Stock Company, to oversee project implementation.

As of 11:56 am, RVNL shares traded 8.43 per cent higher at Rs 272.65, outperforming the S&P BSE 500 index which was up 0.57 per cent.