Rail Vikas Nigam Limited (RVNL) has recently secured a significant project after emerging as the Lowest Bidder (L1) from Southern Railway for a project valued at Rs. 156.47 crore. The share price of this Navratna CPSE (Central Public Sector Enterprises) under the Ministry of Railways (MoR) surged by 3.2 percent on the Bombay Stock Exchange to hit an intraday high at Rs. 386.5. With a market capitalization of Rs. 78,282 crore, RVNL’s shares were trading in the green at Rs. 375.75, marking a 0.4 percent increase compared to its previous closing price. The contract, which includes the provision of Automatic Signalling on the Ernakulam JN(ERS) – Vallattol Nagar (VTK) Section on B-Route of Thiruvananthapuram Division in the Southern Railway, is set to be executed in 750 days.
RVNL’s joint venture (JV), KRDCL-RVNL, will undertake this project, with RVNL holding a 49 percent stake and Kerala Rail Development Corporation (KRDCL) holding a 51 percent stake. This recent contract win adds to RVNL’s growing list of projects, including being declared as the Lowest Bidder from Dakshin Haryana Bijli Vitran Nigam (DHBVN) Limited for a project valued at ~Rs. 124.4 crore.
Financially, RVNL has shown strong performance, with a 17.4 percent year-on-year growth in revenue from operations and a 33.2 percent increase in net profit. The company’s shares have delivered impressive returns, with multibagger returns of nearly 203 percent in the last year and around 106.2 percent returns year-to-date. RVNL, along with its Subsidiary and JVs, is actively involved in implementing various rail infrastructure projects assigned by MoR, encompassing doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and production units.
