PSU stock with a vision to build world-class durable infrastructures in focus this Wednesday, after it signed MoU with a Dubai-based firm to transform the civil infrastructure landscape in the Gulf Cooperation Council (GCC) countries.
Price Action
With a market capitalization of Rs. 86,830 Crores, the shares of Rail Vikas Nigam Limited were trading at Rs. 412 per equity share, down 0.9 percent from its previous day’s close price of Rs. 416.
What Happened
RVNL and GBHIC’s partnership is more than just a collaboration—it’s a strategic masterstroke in the GCC region. The duo aims to tap into the rapidly growing demand for civil infrastructure in powerhouse nations such as Saudi Arabia, UAE, and Qatar.
These countries are known for investing billions into urban development, smart cities, and transport networks. By leveraging their combined expertise, this MoU signals RVNL’s bold transition from being a domestic leader to a formidable global contender in the civil infrastructure arena.
About the Company
Rail Vikas Nigam Limited (RVNL) has been a cornerstone of India’s rail infrastructure development since its inception in 2003. As a public sector enterprise under the Ministry of Railways, RVNL is tasked with executing high-impact projects such as rail line expansions, electrification, and construction of complex bridges and tunnels.
Over the years, the company has cemented its reputation as a trusted partner in nation-building, delivering projects on time and within budget. With its listing on NSE and BSE, RVNL has not only gained investor confidence but also showcased its commitment to transparency and growth.
Financials
The company’s revenue from operations fell by 1.4 percent from Rs. 5,210.34 cr to Rs. 5,136 cr during Q2FY24-25, accompanied by profits of Rs. 394.5 cr to Rs. 286.8 cr.
In terms of return ratios, it has reported a return on equity (ROE) of 15.33 percent and a return on capital employed (ROCE) of 16.45 percent.
Recent Orders
On November 5, a consortium led by Rail Vikas Nigam Limited (RVNL), along with HFCL Ltd. and Aerial Telecom Solutions Pvt., was announced as the lowest bidder for a ₹5,008 cr project awarded by Bharat Sanchar Nigam Ltd. (BSNL). The scope of the project includes the development, enhancement, and operation and maintenance of the middle-mile network for BharatNet.
On the same day, another joint venture headed by RVNL also emerged as the lowest bidder for an East-based infrastructure project. The contract includes tasks like earthwork, building small and large bridges, underpasses, overpasses, retaining walls, level crossings, and other related works.
Conclusion
This is not just another MoU—it’s a ticket to the big league. Investors, stakeholders, and industry watchers are all eyes on this alliance, which promises to create waves in the global market.
Written by Shwetha Sairam
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