A prominent railway infrastructure stock surged 11 percent in today’s trade after the company announced receiving a significant order worth Rs.116 crore from Central Railway. The development reflects strong order inflows and continued momentum in infrastructure execution within the railway sector.
During Friday’s trading session, Rail Vikas Nigam Ltd‘s share price reached an intra-day high of Rs.417.50 per share, rising 11 percent from its previous close of Rs.376.25 apiece. The shares have retreated since then and currently trading at Rs.409.30 per share.
Contract Specifications
Rail Vikas Nigam Limited (RVNL) has received a significant domestic order from Central Railway for carrying out Overhead Equipment (OHE) modification work. The project involves upgrading the existing 1×25 KV electric traction system to a 2×25 KV AT feeding system in the Itarsi – Amla Section of the Nagpur Division, aimed at achieving a 3,000 MT freight loading target. The contract, valued at Rs.115.79 crore (including applicable taxes), is scheduled to be executed over 24 months.
RVNL currently holds an order book of approximately Rs.97,000 crore, comprising around Rs.49,000 crore from market-driven bidding projects and about Rs.47,000 crore from railway-related contracts. This marks a decline from its historical peak of Rs.1,40,000 crore, reflecting a strategic transition by the management towards competitive, market-based bidding. The company anticipates an annual turnover in the range of Rs.28,000 to Rs.30,000 crore, with most projects expected to be executed over a 3-4 year timeframe.
Expanding its presence internationally, the company has submitted bids in markets such as Bangladesh, Maldives, Sri Lanka, UAE, Oman, Rwanda, Uzbekistan, Saudi Arabia, and Nepal. To strengthen its global operations, international offices have been established in South Africa, Oman, UAE, and Maldives.
Financial Overview
In its latest financial update for Q3 FY25, Rail Vikas Nigam Limited reported revenue of Rs.4,591 crore, reflecting a decrease of approximately 1.8 percent from Rs.4,676 crore in Q3 FY24. On a sequential basis, revenue declined by about 5.7 percent from Rs.4,869 crore in Q2 FY25, indicating a slowdown in operational performance.
The company recorded a net profit of Rs.295 crore, down around 9.5 percent from Rs.326 crore in Q3 FY24. Compared to Rs.303 crore in Q2 FY25, net profit fell by approximately 2.6 percent, signaling a slight reduction in profitability. Furthermore, RVNL is going to announce its Q4 FY25 results on May 21, 2025.
The company has a Return on Capital Employed (ROCE) of 16.45 percent and a Return on Equity (ROE) of 15.33 percent. Its Price-to-Earnings (P/E) ratio stands at 60.24, higher than the industry average of 19.94. Furthermore, the company maintains a current ratio of 1.93, a debt-to-equity ratio of 0.62, and an Earnings Per Share (EPS) of Rs.6.24.
Written by – Siddesh S Raskar
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