Railway company specializing in railway infrastructure development is in focus after it jumped up to 5 percent after receiving an order for upgradation of Electric traction system.
Share Price Movement
With a market capitalization of Rs. 79,606 Crore, the stock of Rail Vikas Nigam Ltd opened at Rs. 395.95 up 0.15 percent from yesterday’s close, and after opening, it made an intraday high of Rs. 399 up 0.92 percent.
Order Update
The Company has emerged as the e Lowest Bidder (L1) from the South Eastern Railway for “Design, Supply, Erection, Testing and Commissioning for upgradation of Electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Kharagpur (Excl.)- Tatanagar (Incl.) section of Kharagpur/Chakradharpur division of South Eastern Railway to meet 3000 MT loading target.
The total value of the order is Rs. 210.78 Crore and the time period by which the order is to be executed is 24 months.
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Q2FY25 Financial Highlights
The company reported a 1.20 percent YoY decrease in revenue from Rs. 4,914.32 Crore in Q2FY24 to Rs. 4854.95 Crore in Q2FY25. On a QoQ basis, the company reported an increase of 19.17 percent in revenue from Rs. 4,073.80 Crore in the previous quarter.
Their Net profit saw a decrease of 27.26 percent YoY from Rs. 394.42 Crore to Rs. 286.89 Crore for the same period. On a QoQ basis, the company reported an increase of 28.12 percent in Net profit from Rs. 223.92 Crore in the previous quarter.
Rail Vikas Nigam is currently trading at a P/E of 61.2, which is above the industry P/E of 19.94.
About the Company
Rail Vikas Nigam Limited (RVNL) is a government-owned public sector enterprise under the Ministry of Railways, India, established in 2003 to accelerate railway infrastructure development. The company is responsible for railway line expansion, modernization, electrification, and signaling projects across India.
It plays a key role in constructing new railway lines, doubling and tripling existing tracks, converting narrow-gauge lines to broad-gauge, and building railway bridges, tunnels, and stations.
Written By Abhishek Das
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