One of the Navaratna PSU stocks has engaged in rail infrastructure development and specializes in diverse railway projects. The stock has jumped by 3% after receiving an order from East Central Railway worth 180.01 crore and from BSNL worth Rs. 1,917.39 crore for the development of a middle-mile network project.
Stock Movement
Rail Vikas Nigam Limited’s share has jumped by 2.93 percent from the previous close of Rs. 469.60. The stock opened at Rs. 476.95 and is currently trading at Rs. 483.35 with a high of Rs. 486.90 and a low of Rs. 473.50. The market capitalization now stands at approximately Rs. 1,00,779.45 crore
What Happened
Rail Vikas Nigam Limited has secured a Letter of Acceptance from East Central Railway for track infrastructure development. The project covers the design, supply, and commissioning of a 2x25KV feeder line along with OHE modification works. The project spans across the Garwa Road-Mahadiya Section of the Dhanbad Division, covering 229/458 RKM/TKM. The cost of the projects will be Rs. 180.01 crore and complete the work within 18 months.
RVNL’s collaboration with HFCL Limited and Aerial Telecom Solutions has won BSNL’s Bharat Net Middle Mile network project. The contract was valued at Rs. 1,917.39 crore, including three years of construction and ten years of maintenance. The maintenance fees start at 5.5% annually for five years and increase to 6.5% for the remaining period.
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Financials and ratios
Rail Vikas Nigam Limited’s revenue has increased from Rs. 20,282 crore in FY23 to Rs. 21,733 crore in FY24, which has increased by 7.15 percent. The net profit of the company has increased by 15.38 percent, from Rs. 1,268 crore in FY23 to Rs. 1,463 crore in FY24.
In terms of quarterly results, the company revenue has decreased by 34.01 percent, from Rs. 5,446 crore in Q1 FY24 to Rs. 4,064 crore in Q1 FY25. The net profit has also been down by 53.21 percent, from Rs. 334 crore in Q1 FY24 to Rs. 218 crore in Q1 FY25
In terms of ratio, Rail Vikas Nigam Limited’s ROE and ROCE are 20.4% and 18.7%, respectively. The debt-to-equity ratio of Sprayking Limited is 0.77x, and EPS will be Rs. 6.46.
Company Profile
Rail Vikas Nigam Limited (RVNL) leads India’s rail infrastructure development and specializes in diverse railway project execution nationwide. The company excels in building new railway lines, implementing gauge conversions, and managing complex electrification projects. RVNL delivers comprehensive solutions for bridges, workshops, and metro systems across the country. Their expertise spans from basic track work to sophisticated infrastructure development.
The company manages projects end-to-end, offering turnkey solutions from conception through final commissioning. RVNL’s services cover design development, estimation, contract management, and complete project execution. They serve various central and state government ministries and public sector organizations. Through innovative solutions and technical expertise, RVNL continues to strengthen India’s railway infrastructure.
Written By – Nikhil Naik
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