RVNL Shares Rocket 18% to hit record high,crossed 85000 Cr Order Book,Market Cap Breaches ₹1 Lakh Cr Mark For 1st Time, Two big Resons, should apply or not???

RVNL‘s share price skyrocketing on Friday going up over 18% to hit a new all-time high of ₹498.

This was after the company signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd. for participation in upcoming projects in India and abroad.

RVNL has signed MoU with Delhi Metro Rail Corporation Limited for participation in the upcoming projects in India and abroad as Project Service Provider for Metro, Railways, High Speed Rail, Highways, MegaBridges, Institutional Buildings/ Workshops, S&T works, and Railway Electrification," according to an Nse Bse exchange filing.

The massive surge is also seen across several railway stocks, including IRCON and IRFC. IRCON share price was up around 11% and IRFC shares were zooming 7% at the time of writing on Friday. The rally might also be gaining strength from the optimism that the upcoming budget would hike up the allocation for railways.

And due to the upcoming budget, there is a rally in all these psu stocks and it is expected that - Indian Railways may receive an increase in capital expenditure in the upcoming interim budget , Introduction of modern and high-speed trains and enhanced safety measures ,Allocation of Rs 2.8-3 lakh crore for the Railways to keep its capex momentum intact etc.

Rail Vikas Nigam Limited (RVNL) has been a significant player in the infrastructure sector, particularly in railway development projects across India. As a public sector enterprise, RVNL has consistently delivered on its mandate, contributing to the nation's growth and development. The stock has surged over 170% since the start of the year. The massive rally has been backed by a strong orders. As per estimates, the company has bagged orders worth over ₹2,000 cr, since April. The company had earlier said that it wants to have an order inflow of around ₹20,000-₹25,000 cr for the year.

Detailed Analysis of RVNL's Order Book

One of the key indicators of RVNL’s performance is its extensive order book, which encompasses various high-value contracts in railway infrastructure development.

Rail Vikas Nigam Limited (RVNL) has an order book of Rs 85,000 crore, including;

- Rs 9,000 crore for Vande Bharat trains

- Rs 7,000 crore for metro projects

- Projects in electrification and transmission lines

- Rs 543 crore for constructing elevated stations for the Indore Metro Rail Project

- Rs 38.10 crore contract from South East Central Railway for an automatic signaling system

- Rs 160 crore order from East Coast Railway for an automatic block signalling system

- Rs 239 crore order from Southern Railway

- Rs 420 crore order from Western Railways

- Rs 1098 crore order for the development of distribution infrastructure at the South Zone of Himachal Pradesh

- Rs 888.56 crore order for the south zone of Himachal Pradesh

A closer look at the order book reveals a diversified portfolio, ensuring a steady flow of work and revenue.

Conclusion

In conclusion, RVNL continues to be a promising entity in the infrastructure sector, with its shares reflecting the company's strong fundamentals and strategic growth trajectory. The comprehensive order book and in-depth market analysis indicate a positive future outlook for RVNL.

Here are some future projections for RVNL share price: - Short-term (2024): Rs 513-540

- Mid-term (2025): Rs 669-720

- Long-term (2026-2030): Rs 827-1,306

- Bullish trend (2031-2035): Rs 1,615-2,646

Disclaimer

Please note that these projections are based on analysis and are subject to market risks and uncertainties. It's always a good idea to do your own research and consult with a financial advisor before making investment decisions,

Some of the factors that could impact RVNL's share price include:

- Performance of the rail industry

- Government orders and contracts

- Company's financial performance and

profitability

- Global economic conditions

-Market sentiment

Keep in mind that these projections are subject to change and may not reflect the actual performance of the stock.