RVNL shares in focus after Rs 201 crore East Coast Railway order

Shares of Rail Vikas Nigam Limited (RVNL) are likely to be in focus on Friday after the state-owned rail infrastructure company said it has secured a fresh order from East Coast Railway to set up a wagon Periodical Overhauling (POH) workshop in Odisha, adding to its project pipeline at a time when the stock has been under pressure in recent sessions.

RVNL on Thursday, Jan 8, said it has received a Letter of Acceptance from East Coast Railway for setting up a wagon POH workshop with a capacity of 200 wagons at Kantabanji in Odisha. The project involves the construction of a dedicated facility to undertake periodic overhauling of wagons, a critical activity for maintaining operational efficiency and safety in railway freight movement.

Order details

According to the company’s disclosure, the total project cost stands at Rs 201.23 crore, excluding GST. The execution period for the project has been fixed at 18 months. RVNL said the contract has been awarded in the normal course of business and has been categorised as a domestic project.

The company added that it has emerged as the sole bidder for the project. It also clarified that neither the promoter nor the promoter group has any interest in the entity awarding the contract, and that the order does not fall under related party transactions.

RVNL said the project is expected to strengthen its order book and reinforce its role in railway infrastructure development.

Rail Vikas Nigam Limited is a Government of India enterprise engaged in project implementation for rail infrastructure, including the construction of new lines, doubling of existing lines, gauge conversion and electrification works across the country.

RVNL stock performance and technicals

On Thursday, RVNL shares closed at Rs 342.55 on the NSE, down 4.16% for the day.

From a technical standpoint, the stock is currently trading below four of its eight key simple moving averages, the 5-day, 10-day, 150-day and 200-day SMAs, while trading above its 20-day, 30-day, 50-day and 100-day SMAs.

The Relative Strength Index stands at 50.6, indicating the stock is neither overbought nor oversold. The Moving Average Convergence Divergence is at 9.7 and remains above its centre line but below the signal line.

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