The stock of Rail Vikas Nigam Limited (RVNL) rallied 11.79 per cent to ₹65.40 on the NSE in Thursday’s intra-day trade after a joint venture (JV) of the railways-owned firm and Russia’s CJSC Transmashholding (TMH) emerged as the lowest bidder for the ₹58,000-crore tender for manufacturing and maintenance of 200 lightweight Vande Bharat trains.
Shares of RVNL has been on a roll, delivering more than double returns to investors in just six months, breaking out from the consolidation zone of around five-years. The stock jumped 113 per cent in the last six months, rising from ₹30.70 on 23 August, 2022 to ₹65.40 today. Market capitalization of the firm rose to ₹13,740 crore on BSE.
RVNL-Russia’s TMH on Vande Bharat train deal
The company emerged as the Lowest Bidder (L1) for ‘Manufacturing cum Maintenance of Vande Bharat Trainsets including Up-gradation of the Government Manufacturing Units & Trainset Depots’ in JV with Joint Stock Company Metrowagonmash (70 per cent), Joint Stock Company Locomotive Electronic System (5 per cent) and RVNL (25 per cent), RVNL said in a regulatory filing. Metrowagonmash is part of Transmashholding.
The consortium of state-run Bharat Heavy Electricals Ltd (BHEL) and Titagarh Wagons emerged as the second lowest bidder with a bid of ₹139.8 crore per train.
RVNL-TMH and the BHEL-Titagarh consortiums have a low-manufacturing presence in India when compared to the other players.
As per financial opening dated 01.03.2023, the M/s. JSC Metrowagonmash-Mytischi-RVNL (JV) has been declared L-1. The total quantity is 200 Trainsets and cost per set is ₹120 crore, the company said. The intimation regarding Letter of Award (LOA) and Declaration will be submitted as and when the LOA received, the company said.
The consortium made a bid of around ₹58,000 crore, with the cost to manufacture one train set at ₹120 crore.
In the third quarter ending December 2022, net profit rose 30.51 per cent to ₹382.42 crore, compared to ₹293.01 crore during the previous quarter ended December 2021. Sales stood flat at ₹5012.09 crore in the December quarter as against ₹5049.24 crore during the quarter ended December 2021.
RVNL was incorporated as a public sector undertaking for the development, financing and implementation of projects related to rail infrastructure.