Rail Vikas Nigam Ltd (RVNL) shares were in the red after surging 4% early on February 24 on news that the company had won a Rs 197 crore order from Bhopal-based Madhya Kshetra Vidyut Vitaran Company.

Brokers attributed the decline to profit-taking, as investors may decide to cash in some of their paper profits after shares almost doubled in the last year.

Shares of RVNL were down 1.5% at Rs 63.95 on the BSE at 9:55 am.

RVNL has won the order from MP Madhya Kshetra Vidyut Vitaran Company Ltd for the Bhopal region to supply, install, test and commission a new 11 KV bifurcation and interconnection line, the company said in a bourse filing.

The company has already secured seven orders for 2023.

In the Union Budget tabled on February 1, Indian Railways got a capex boost of Rs 2.4 lakh crore in 2023-24, up 65.6% from the previous year.

“Capex for Indian Railways has been set at Rs 2.4 lakh crore, the highest ever; nine times higher than in 2013,” Finance Minister Nirmala Sitharaman said in her budget speech.

With allocations to the sector at an all-time high, market participants are optimistic that rail-related companies will benefit.