RVNL Emerges as Lowest Bidder for Maharashtra Metro Project, Share Price Hits 52-week High

Image for: RVNL Emerges as Lowest Bidder for Maharashtra Metro Project, Share Price Hits 52-week High

📷 Image Credits: Moneycontrol

Rail Vikas Nigam (RVNL) recently witnessed a surge in its share price, reaching a 52-week high of Rs 398.35 in the opening trade on May 27. This increase came after the company emerged as the lowest bidder for a significant project by Maharashtra Metro Rail Corporation. The project, valued at Rs 187.34 crore, involves the construction of six elevated metro stations in Nagpur. These stations, including Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club, and Kanhan River Metro Station, are part of Reach 2B of the Nagpur Metro Rail Project Phase 2 and are set to be completed within 30 months.

RVNL has been making significant strides in the railway infrastructure sector, as evidenced by the recent acceptance of a letter worth Rs 148.26 crore from South Eastern Railway for the upgradation of the Electric traction system. This successful bid has not only propelled RVNL’s share price but also led to a 33.2 percent increase in its Q4 net profit, reaching Rs 478.6 crore. Additionally, the company’s revenue from operations grew 17.4 percent year-on-year to Rs 6,714 crore, showcasing a robust financial performance.

Furthermore, RVNL’s operational EBITDA in Q4FY24 saw a significant improvement, rising by 21.8 percent year-on-year to Rs 456.4 crore. The share price of RVNL has surged by 238 percent in the last year, reflecting investor confidence in the company’s growth prospects and project execution capabilities.

Rail Vikas Nigam Ltd’s recent project win and strong financial performance underscore its position as a key player in the railway infrastructure development sector. With a track record of successful project execution and a commitment to enhancing the country’s rail network, RVNL continues to attract investor interest and solidify its presence in the market. As the company embarks on new projects and expands its portfolio, stakeholders are closely monitoring its performance and strategic initiatives to drive future growth and value creation.