IRFC mcap surpasses M&M, Bajaj Auto
Railway stocks rallied 15% on BSE on Friday led by RVNL which was up 15.47%; IRFC jumped 8.84%
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New Delhi: The Indian Railway Finance Corporation’s (IRFC) market capitalisation crossed Rs 2 lakh crore on Friday, surpassing the market capitalisation of Mahindra and Mahindra and Bajaj Auto. IRFC is now valued at Rs2.08 lakh crore. It had earlier surpassed Tata Steel in market capitalisation. IRFC is up 8.8 per cent on Friday.
Railway stocks jumped up to 15 per cent on BSE on Friday led by Rail Vikas Nigam Limited (RVNL). RVNL was up 15.47 per cent to Rs281.40. IRCON rose 8.85 per cent to Rs222.10. IRFC jumped 8.84 per cent to Rs159.20. RITES soared 7.3 per cent to Rs558.35. Railtel grew 7.1 per cent to Rs389. IRCTC gained 5.2 per cent to Rs975.
According to a report by HDFC Securities, RVNL is a project executing agency working for and on behalf of Ministry of Railways which is likely to play a key role in the development of railway infrastructure in India. It has a strong order book visibility. RVNL has diversified into non-railway projects and over the past 2 years it has won orders worth Rs32,000 crore through competitive bidding. It has also forayed into other geographies and is executing a project in Maldives and signed a MoU with Kyrgyzstan. The proportion of orders won through competitive bidding has been increasing, thereby reducing its dependence on Ministry of Railways nomination.
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.
