RVNL shares rise 10% as Indian share market struggles with This order book update. Check details

Whereas the larger Indian share market felt the heat and indicated weakness, stocks of Rail Vikas Nigam Limited (RVNL) jumped a whopping 10%, defying the overall trend. The move was spearheaded by a mammoth update in the company’s order book, which has also attracted the eye of investors and analysts.

RVNL, being the pre-eminent supplier of rail infrastructure to Indian Railways, considerably built its project portfolio of orders. The order win, estimated in several hundreds of crores, encompassed the laying of track, electrification, and signaling upgradation across several states. This has increased investor confidence and strengthened RVNL positioning as our market leader in the infrastructure sector.

Market analysts feel that this surge in the stock price of RVNL is a true indication of the faith of the investors in its ability to perform and its consistent financials. Even though the market was reflecting volatility due to global cues and profit-booking in the bluechips, RVNL’s clear picture in the future earnings has made it a focus area.

The order book revision has taken RVNL’s pending orders to a new high, which indicates good revenue visibility in the next few quarters. This is particularly significant at a juncture when infrastructure development continues to be a priority sector for the central government. With Indian Railways focusing on modernization and expansion, such companies as RVLN are sure to gain directly. Besides the order book, RVNL’s steady focus on implementation, operational efficiency, and joint ventures with other public sector undertakings has also played an immense role in improving its prospects. Investors now eagerly await the next quarter numbers to see how this momentum is being translated into real growth in the bottom line.

Overall, though the Indian market was in headwinds today, RVNL was a silver lining. The fact that the company continues to win large, strategic projects adds strength to its long-term growth story and makes it one of the more resilient and promising stocks in the infrastructure space.