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Shares of Rail Vikas Nigam Ltd (RVNL) rallied more than 10% to hit a record high level of 80 apiece on the BSE in Monday's early trading session. The stock has been in an upward momentum in the last month as its price has nearly doubled in November and has gained about 98% as compared to 4% rise in benchmark BSE Sensex.

Rail Vikas Nigam Limited is a PSU company, involved in building rail infrastructure. The company executes projects by raising funds via special purpose vehicle (SPV) route on project specific basis and strategic stakeholders. 

The company generally works on a turnkey basis and undertakes the full cycle of project development from conceptualization to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management, etc. and all stages of project execution up to the stage of commissioning of the new railway lines.

For the quarter ended September 2022 of the current fiscal or Q2 FY23, the company's consolidated net profit rose 36.5% from the year ago quarter to 381 crore whereas its revenue increased by 22% year-on-year (YoY) to 4,908.9 crore in July-September period.

Meanwhile, earlier this month, the company informed that “Rail Vikas Nigam Limited (RVNL) has been declared successful bidder in an International project in Maldives named as Development of UTF (Uthuru Thila Falhu- Island) Harbour. This is a strategic project of Govt. of India. The estimated project costs is 1544.6 crore (approx.)."

It also was recently awarded contract for increasing speed potential to 160 KMPH in Pradhankhanta - Bandhua Section of Dhanbad Division under East Central Railway.

The government holds 78.2% stake in the railway company as of September 2022. The PSU Railway stock has given multibagger return of more than 127% in 2022 (year-to-date or YTD) so far, whereas the multibagger stock has surged over 148% during the last six months period alone. 

Rail Vikas Nigam shares made their market debut in May 2019 and have rallied about 305% since its listing. The issue, with a price band of 17-19 per share, was subscribed 1.83 times.

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