During Tuesday’s trading session, the shares of this Navratna railway stock engaged in rail infrastructure development and specialising in diverse railway projects surged by 7.5 percent to Rs. 439.9 on BSE, after securing an order worth nearly Rs. 404.4 crores from East Coast Railway.
With a market cap of Rs. 89,228.4 crores, at 12:05 p.m., the shares of Rail Vikas Nigam Limited were trading in the green at Rs. 427.95, up by around 4.6 percent, as against its previous closing price of Rs. 409.1.
What’s the news
According to the latest regulatory filings with the stock exchanges, Rail Vikas Nigam Limited (RVNL) has emerged as the Lowest Bidder (L1) for the Koraput-Singapur Road Doubling Project, valued at ~Rs. 404.4 crores. Awarded by the East Coast Railway, the project is set to be executed within 30 months.
The scope of the project includes constructing 27 major bridges (22 major bridges and 5 road-over-bridges), along with earthwork for approach formations, protection works, and other related miscellaneous tasks.
The project will be carried out between Tikiri and Bhalumaska stations as part of the Koraput-Singapur Road Doubling Project under the Waltair Division of East Coast Railway.
Previous News
On 3rd December, RVNL received a Letter of Acceptance (LoA) for a project valued at Rs. 270 crores from Maharashtra Metro Rail Corporation Limited. The project is to be completed within 30 months and involves the construction of elevated metro stations under Nagpur Metro Rail Project (NMRP) Phase-2.
The order is for the construction of seven elevated metro stations in Reach 3A, namely Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur, Hingna Bus Station, and Hingna. Additionally, it involves the construction of three elevated metro stations in Reach 4A, which are Pardi, Kapsi Khurd, and Transport Nagar.
On 30th December, the company emerged as the Lowest Bidder (L1) for a project worth around Rs. 137.2 crores from Central Railway. The project is to be executed within a timeframe of 24 months.
The scope of the project includes the design, supply, erection, testing, and commissioning of a 132/55 KV traction substation, sectioning posts (SPs),
and sub-sectioning posts (SSPs) in the 2×25 KV traction system (Scott Connected Transformer) for the Bhusaval-Khandwa section of Central Railway. The project aims to achieve a loading target of 3,000 MT under the EPC mode.
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Financials
RVNL reported a marginal decline in revenue from operations, experiencing a year-on-year fall of nearly 1.2 percent, from Rs. 4,914 crores in Q2 FY24 to Rs. 4,855 crores in Q2 FY25.
Similarly, its net profit decreased during the same period from Rs. 394 crores to Rs. 287 crores, representing a decline of nearly 27 percent YoY.
Stock Performance
The stock has delivered multibagger returns of nearly 134 percent in one year, while around 3 percent of positive returns in the last six months. The shares of RVNL have given negative returns of about 2.4 percent in the last one month.
The stock hit its 52-week high at Rs. 647 on the 15th July, and compared to its current trading price of Rs. 426.2, RVNL is trading at a discount of nearly 34 percent.
About the company
Incorporated in 2003, Rail Vikas Nigam Limited works as the construction arm of the Ministry of Railways (MoR) for project implementation and transportation infrastructure development.
The company is engaged in executing various railway projects, including new lines, doubling, gauge conversion, railway electrification, workshops, metro projects, bridges, construction of cable-stayed bridges, and institution buildings.
Written by Shivani Singh
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