One of the Railway and Navaratna PSU stocks specialises in rail projects like new lines, track doubling, and electrification and has expanded globally into metro lines, bridges, and workshops. The stock has jumped 1.58 percent after receiving orders from South Central Railway worth Rs. 625 crore.
Stock Movement:
Rail Vikas Nigam Limited‘s share has jumped by 1.58 percent from the previous close of Rs. 434.05. The stock opened at Rs. 435.95 and is currently trading at Rs. 440.90 with a high of Rs. 446.80 and a low of Rs. 431.15. The market capitalization now stands at approximately Rs. 91,928.54 crore.
What Happened
Rail Vikas Nigam Limited has received a Letter of Acceptance from South Central Railway for the Engineering, Procurement, and Construction (EPC) contract for the doubling of the track between Parbhani and Parli stations (58.06 km), excluding the Gangakhed yard (6.775 km).
The scope of work includes electrification and signaling as part of the Parbhani-Parli doubling project in Maharashtra. The project is to be completed within 30 months, with a total cost of Rs. 625.08 crore.
Order book of RVNL
As of Q1 FY25, Rail Vikas Nigam Limited (RVNL) has secured an order book surpassing Rs. 83,000 crore. Recently, the company added orders worth over Rs. 7,000 crore, bringing the total value of its order book to more than Rs. 90,000 crore.
In FY23-24, RVNL took part in 142 bids, amounting to a combined value of Rs. 65,000 crore. The company recorded a success rate of 23.24% in civil engineering projects, 35.78% in electrical projects, and 14.27% in signaling and telecommunication (S&T) projects.
Looking ahead to FY24-25, RVNL plans to bid on more than 150 projects worth Rs. 75,000 crore. The company’s approach is to keep an order book that is three to four times its annual revenue.
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Recent quarter results and ratios:
Rail Vikas Nigam Limited (RVNL) reported a 1.21% decline in revenue from operations for the recent quarter, with figures dropping from Rs. 4,914.32 crore in Q2 FY24 to Rs. 4,854.95 crore in Q2 FY25. In addition, the company experienced a significant 27.26% year-on-year decrease in net profit, which fell from Rs. 394.42 crore in Q2 FY24 to Rs. 286.89 crore in Q2 FY25.
Despite the short-term decline, RVNL has demonstrated strong long-term growth, achieving a compound annual growth rate (CAGR) of 16.66% in revenue and 19.24% in net profit over the past five years.
The company maintains robust financial performance, with a return on equity (ROE) of 20.4% and a return on capital employed (ROCE) of 18.7%. RVNL’s debt-to-equity ratio is 0.77x, and its earnings per share (EPS) for the period stands at Rs. 6.14.
Company Overview:
Rail Vikas Nigam Limited (RVNL) was founded in 2003 and is a leading public-sector enterprise in India dedicated to addressing infrastructure gaps within Indian Railways. The company specializes in rail-related projects such as the construction of new lines, track doubling, and electrification, while also expanding its footprint globally in areas like metro rail systems, bridges, and workshops.
As a “Navratna” status company, RVNL focuses on leveraging technical expertise, ensuring efficient project execution, and enhancing its international presence across diverse infrastructure sectors.
Written By – Nikhil Naik
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