Shares of Rail Vikas Nigam Limited (RVNL) hit a new high of Rs 118.40, up 10% on BSE in intraday trade on Tuesday after RVNL-SCC Joint Venture (JV) emerged as the lowest bidder (L1) Udipa The project cost for additional Chief Engineer of UHLC Water Resources District in Seoul is Rs 2,249 crore.

The nature of the contract is to plan, design and construct major canals and structures, including associated water distribution systems, to provide irrigation for 41,903 hectares. Serving the upper high-water canal area of ​​the Mahi Bajaj Sagar project through a piped irrigation network, Banswara (Rajasthan), on an Engineering, Procurement and Construction (EPC) single responsibility turnkey basis comprising 10 years of operation and maintenance. The order should be executed within 42 months.

Meanwhile, the Ministry of Public Enterprises on Monday granted the status of Navratna to Rail Vikas Nigam Limited (RVNL), the company said in a bourse filing. In India, Navratna companies are state-controlled companies that can accept investments worth up to Rs 1,000 crore.

The stock has risen 73% in the past month, with a 4% gain for the S&P BSE Sensex.

RVNL mainly adopts turnkey projects and undertakes the entire project development cycle from conceptualization to commissioning, including the design phase, preparation of estimates, invocation and award of contracts, project and contract management, etc.

RVNL follows an asset-light business model, which helps lower its fixed asset component, helping it keep its balance sheet stress-free and reducing inventory days. RVNL, the project executing agency working for the Ministry of Railways (MoR), has a strong order profile and is likely to play a key role in developing India’s railway infrastructure.

Management expects revenue to grow at a CAGR of over 20% over the next few years, supported by strong order books and new order inflows.

Last month, a joint venture between Russian firm Transmashholding (TMH) and RVNL emerged as the lowest bidder to manufacture and maintain 200 lightweight Vande Bharat trains. The consortium bid around Rs 58,000 crore, out of a cost of Rs 120 crore, to manufacture a set of trains.

Earlier this month, RVNL and Siemens India became the lowest bidder (L1) for Mumbai Metro Line 2B of the Mumbai Metropolitan Region Development Authority (MMRDA). The project is estimated to cost around Rs 378.16 crore.