Shares of railway infrastructure companies Rail Vikas Nigam (RVNL) and RITES rallied up to 9 per cent, hitting their respective record highs on the BSE in Friday’s intra-day trade on a strong business outlook. In comparison, the S&P BSE Sensex was trading lower by 0.22 per cent at 60,705 points, at 11:07 AM.
RVNL surged 9 per cent to Rs 46.50, surpassing its previous high of Rs 44.75 touched on October 25, 2021. In the past one month, the stock has zoomed 30 per cent as compared to a 4.5 per cent gain in the Sensex.
Meanwhile, shares of RITES were up 6 per cent at Rs 433.20 in intra-day trade, surging 15 per cent in the past two days. In the last one month, the share has rallied 26 per cent.
RITES is engaged in design, engineering, consultancy, and project management for transport infrastructure sector. RITES’ subsidiary – REMC is involved in power management and generation. The company has a mandate to handle the entire power procurement, under open access for Indian Railways, besides handling renewable energy and energy-efficiency projects.
RVNL, its subsidiary and joint ventures are engaged in the business of implementing various types of rail infrastructure projects assigned by Ministry of Railway (MoR) including doubling (including 3rd/4th lines), gauge conversion, new lines, railway electrification, major bridges, workshops, production units and sharing of freight revenue with railways as per the concession agreement entered into with MoR.
On October 13, a consortium of RITES had secured a new business order for construction of depot cum workshop for Rs 499.41 crore from Bangalore Metro Rail Corporation Limited.
On August 26, RITES had secured a new business order with a JV partner for redevelopment of Kollam Railway Station for Rs 361.18 crore from Southern Railway, Ernakulam, Kerala. In both these orders, the share of RITES is 51 per cent.
Meanwhile, on October 10, RVNL informed that the company was awarded contract for Development of Kharicut Canal (between Naroda Smashan Gruh & Vinzol Vehla) in AMC area Package 2 & 3. Total cost of awarded contract is Rs 484 crore.
Earlier, on September 29, the company said that it has been awarded contract for construction of 4 lane highway from Samarlakota to Achampeta Junction (for 12.25 km) by National Highways Authority of India (NHAI) as a part of Kakinada port to NH – 16 connectivity in the State of Andhra Pradesh under Bharatmala Pariyojana on EPC mode at a total awarded cost of Rs 408 crore.
As the government continues to unveil projects under National Infrastructure Pipeline, Gati Shakti Mission, National Monetisation Pipeline, National Rail Plan and other cutting-edge flagship schemes, RITES with a wide consultancy expertise, pragmatic interventions, and a multi-pronged approach finds itself fully aligned to tap such opportunities, it said.
RITES in its FY22 annual report had said that the growth momentum is expected to continue with projects worth approximately Rs 142 trillion identified under the dynamic National Infrastructure Pipeline and the National Rail Plan envisaging railway infrastructure expansion for FY 2029-30 with more than 35 per cent year-on-year (YoY) increase in capital expenditure (capex) with a proposed infrastructure spend of over Rs 10 trillion in the Budget 2022-23.