Don’t miss the latest developments in business and finance.

Rail Vikas up 10% as JV emerges lowest bidder for 200 Vande Bharat trains

A joint venture of Russian firm Transmashholding (TMH) and RVNL emerged as the lowest bidder for the manufacture and maintenance of 200 lightweight Vande Bharat trains.

Vande Bharat Express
Deepak Korgoankar Mumbai
3 min read Last Updated : Mar 02 2023 | 11:54 AM IST
Shares of railways-owned Rail Vikas Nigam (RVNL) surged 10 per cent to Rs 64.30 on the BSE in Thursday’s intra-day trade after a joint venture (JV) of the company and Russian firm Transmashholding (TMH) emerged as the lowest bidder for the manufacture and maintenance of 200 lightweight Vande Bharat trains.

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 an exchange filing. Metrowagonmash is part of Transmashholding.

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 Rs 120 crore, the company said. The intimation regarding Letter of Award (LOA) and Declaration will be submitted as and when the LOA received, it added. READ MORE

According to media reports, the consortium made a bid of around Rs 58,000 crore, with the cost to manufacture one train set at Rs 120 crore.

RVNL, it's subsidiary and joint ventures are engaged in the business of implementing various types of rail infrastructure projects assigned by Ministry of Railway (MoR) including doubling (including 3rd/4th lines), gauge conversion, new lines, railway electrification, major bridges, workshops, production units and sharing of freight revenue with railways as per the concession agreement entered into with MoR.

RVNL’s major client is the Indian Railways and other clients include various central and state government ministries, departments, and public sector undertakings. RVNL has also started participating in Metro, Highways and other infrastructure sectors through competitive bidding.

At 09:34 AM; RVNL was up 7 per cent at Rs 62.70, as compared to 0.43 per cent decline in the S&P BSE Sensex. The counter saw huge trading volumes, with a combined 18 million equity shares changing hands on the NSE and BSE.

Technical View
Bias: Negative
Target: Rs 48
Resistance: Rs 67.40; Rs 70.30
Support: Rs 63.50

Shares of RVNL have witnessed significant volatility in the last five months or so, the 
stock from levels Rs 33, zoomed to a high of Rs 84.10 in end November 2022. Thereafter, it dipped to Rs 60 in end December, only to bounce back to Rs 81-odd levels by mid-January.

Post which, the stock once again saw a decline to sub-Rs 60 levels as of end February.

Recently, the short-term bias for the stock turned negative, as the 20-DMA at Rs 67.40 has drifted below the 50-DMA placed at Rs 70.30. The 20-DMA now seems headed towards the 100-DMA placed at Rs 63.50.

With today's sharp pullback the stock is seen testing resistance at the 20-DMA, above which it can extend the rally towards the 50-DMA.

The weekly chart suggests, that the stock needs to sustain above Rs 65 on a consistent basis for further gains to emerge.

However, failure to do so, could lead the stock to lower levels of Rs 48, wherein the 200-DMA stands.

(With inputs from Rex Cano)
 

Topics :Buzzing stocksRail Vikas NigamMarket trendsVande Bharat trainstock market trading

Next Story