Shares of Railway Vikas Nigam Limited (RVNL) jumped over 16 per cent in early trade on Friday to hit a fresh 52-week high.RVNL shares were up 18.18 per cent to Rs 288 apiece at around 1:28 pm on the Bombay Stock Exchange (BSE). In early trade, shares of the Railway PSU hit a fresh 52-week high of Rs 288.65.
With this, the market capitalisation of the railway PSU, which delivered multibagger returns to investors in 2023, has crossed 60,000 crore. In the past five trading sessions, RVNL stock is up over 39 per cent and almost 56 per cent in January so far.In six months, RVNL stock has gained a whopping 140 per cent and 273 per cent in a year.
RVNL follows an asset light business model, which helps keep its fixed asset part lower, helping it to keep its balance sheet stress free, and resulting in lower inventory days.It has also commenced consultancy services which could lead to margin expansion, HDFC Securities said. Its orderbook of Rs 67,000cr at the end of Q2FY24 gives a visibility of three years.