One of the Railway and Navaratna PSU stocks engaged in rail infrastructure projects, which included doubling the track, gauge conversion, new lines, railway electrification, major bridges, and workshops. The stock has secured an order from Eastern Railway for BG line construction multi-tracking worth Rs. 834 crore
Stock Movement:
Rail Vikas Nigam Limited‘s share has jumped by 5.66 percent from the previous close of Rs. 420.40. The stock opened at Rs. 451 and is currently trading at Rs. 444.20 with a high of Rs. 462.75 and a low of Rs. 443.35. The market capitalization now stands at approximately Rs. 92,762.54 crore.
What Happened:
Rail Vikas Nigam Limited has received an order from Eastern Railway for multi-tracking BG line construction, including construction of minor bridges, major bridges, RUB, ROB, retaining wall, level crossing, side drain, catch water drain, and ancillary works from Kalipahari to Pradhankhuta, spanning 55.2 km.
The project is to be executed within 36 months, with a total cost of INR 837.67 crore. RVNL holds a 74% share as the lead member, while SCPL holds a 26% share in the joint venture.
Order Book:
As of Q1 FY25, Rail Vikas Nigam Limited (RVNL) has an order book exceeding Rs. 83,000 crore. In recent weeks, the company has secured additional orders worth over Rs. 7,000 crore, bringing the total order value to more than Rs. 90,000 crore.
In FY23-24, Rail Vikas Nigam Limited (RVNL) participated in 142 bids valued at Rs. 65,000 crore. The company achieved a success rate of 23.24% in civil engineering projects, 35.78% in electrical projects, and 14.27% in signaling and telecommunication (S&T) projects.
For FY24-25, RVNL plans to bid on over 150 projects worth Rs. 75,000 crore. The company’s strategy focuses on maintaining an order book that is 3-4 times its annual turnover.
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Recent quarter results and ratios:
Rail Vikas Nigam Limited (RVNL) reported a 1.21% year-on-year decline in revenue from operations, which decreased from Rs. 4,914.32 crore in Q2 FY24 to Rs. 4,854.95 crore in Q2 FY25. Additionally, the company’s net profit saw a significant drop of 27.26% YoY, falling from Rs. 394.42 crore in Q2 FY24 to Rs. 286.89 crore in Q2 FY25.
However, RVNL has demonstrated strong long-term growth, with its revenue and net profit achieving a compound annual growth rate (CAGR) of 16.66% and 19.24%, respectively, over the past five years.
The company maintains solid financial ratios, with a return on equity (ROE) of 20.4% and a return on capital employed (ROCE) of 18.7%. RVNL’s debt-to-equity ratio stands at 0.77x, and its earnings per share (EPS) for the period is Rs. 6.14.
Company Profile:
Rail Vikas Nigam Limited (RVNL) was established in 2003 and is a prominent public sector undertaking in India focused on bridging infrastructure gaps in Indian Railways. The company specialises in rail projects like new lines, track doubling, and electrification and has expanded globally into metro lines, bridges, and workshops. With “Navratna” status, the company emphasizes technical expertise, efficient execution, and a growing international presence across various infrastructure sectors.
Written By – Nikhil Naik
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