This Navratna PSU stock is involved in rail infrastructure projects, including track doubling, gauge conversion, new line construction, railway electrification, major bridges, and workshops. The stock has jumped 3.26% after receiving an order from East Central Railway worth Rs. 187 crore for upgrading the electric traction system.
Stock Price Movement:
In Wednesday’s trading session, Rail Vikas Nigam Limited’s share jumped to an intraday high of 3.26 percent from the previous close of Rs. 437.60. The stock opened at Rs. 443.75 and is currently trading at Rs. 441.95, with a high of Rs. 451.85 and a low of Rs. 441.65. The market capitalization now stands at approximately Rs. 92,137.04 crore.
What Happened:
Rail Vikas Nigam Limited received a ₹186.77 crore order from East Central Railway for upgrading the electric traction system from 1×25 to 2×25 KV AT in the Gomoh-Patratu section, Dhanbad Division.
The project involves the design, supply, erection, testing, and commissioning of traction stations and switching posts, to be completed in 30 months.
Order Book of RVNL:
As of Q1 FY25, Rail Vikas Nigam Limited (RVNL) has an order book exceeding Rs. 83,000 crore. Recently, the company secured additional orders worth over Rs. 7,000 crore, bringing the total value to over Rs. 90,000 crore.
In FY23-24, RVNL participated in 142 bids, totaling Rs. 65,000 crore, with a success rate of 23.24 percent in civil engineering, 35.78 percent in electrical, and 14.27 percent in signaling and telecommunication (S&T) projects.
For FY24-25, RVNL plans to bid on over 150 projects valued at Rs. 75,000 crore, aiming to maintain an order book three to four times its annual revenue.
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Recent Quarter Results and Ratios:
Rail Vikas Nigam Limited (RVNL) reported a 1.21 percent decrease in revenue, dropping from Rs. 4,914.32 crore in Q2 FY24 to Rs. 4,854.95 crore in Q2 FY25. The company also experienced a notable 27.26 percent year-on-year decline in net profit, falling from Rs. 394.42 crore in Q2 FY24 to Rs. 286.89 crore in Q2 FY25.
Despite short-term setbacks, RVNL has posted strong long-term growth, achieving a compound annual growth rate (CAGR) of 16.66 percent in revenue and 19.24 percent in net profit over the past five years.
In terms of return ratios, the company’s ROCE and ROE should be 18.7 percent and 20.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.68x. RVNL’s EPS is to be Rs. 6.14.
Company Overview:
Rail Vikas Nigam Limited (RVNL) was founded in 2003 and is a leading public-sector enterprise in India dedicated to addressing infrastructure gaps in Indian Railways. The company specializes in rail projects such as constructing new lines, doubling tracks, and electrification.
RVNL is also expanding its global presence in metro rail systems, bridges, and workshops. As a “Navratna” company, RVNL focuses on leveraging its technical expertise, executing projects efficiently, and expanding its footprint across various infrastructure sectors.
Written By – Nikhil Naik
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