Rail Vikas Nigam Limited (RVNL) has recently been awarded two contracts by the Central Railway, Ministry of Railways, to enhance the electrical infrastructure in the Nagpur division. The first contract, valued at Rs 138,45,86,991.62, will involve modifications to the overhead electric (OHE) system on the Amla-Nagpur section. The second contract, worth Rs 132,59,20,130.37, will focus on similar OHE modifications on the Wardha-Ballarshah section. These projects aim to upgrade the existing 1×25 kV electric traction system to a 2×25 kV AT Feeding System to accommodate heavier loads, with a specific focus on achieving a 3000 MT loading capacity. The infrastructure improvements are projected to be completed within a two-year timeframe.
RVNL has also signed two Memorandums of Understanding (MoUs) to broaden its services. One MoU with IMS Consultancy Private Limited (IMS) allows RVNL to utilize IMS’s technical and advisory services expertise for various infrastructure projects in Nepal, encompassing railways, tunnels, roads, bridges, and power sectors. The other MoU, with TATWEER Middle East and Africa LLC (TATWEER), targets international collaboration, leveraging RVNL’s railway expertise in the MENA region and Europe, in addition to exploring joint ventures for designing and executing railway projects. This partnership also expands RVNL’s service portfolio to include smart city solutions, digital transformation, and professional engineering services.
In regards to its stock performance, in March 2024, the President of India’s portfolio sold 11,17,57,277 shares of RVNL, reducing their stake to 72.84% from 78.20% in March 2023. On the same day, RVNL’s shares increased by 2.38%, reaching a fresh 52-week high of Rs 645 per share. At the closing bell, the shares were trading at Rs 626.55 per share, down 0.55%.
The company’s robust financial performance is evident in its strong order book, which amounts to over Rs 85,000 crores as of March 31, 2023. Moreover, RVNL’s net sales have shown significant growth in both quarterly and annual results, with the Board recommending a final dividend of Rs 2.11 per share for the financial year 2023-24. With a market cap of Rs 1,30,637 crore and impressive returns of 420% in 1 year and 2,300% in 5 years, RVNL is certainly a stock to watch for investors interested in the railway infrastructure sector.
