RVNL shares rise 7% on two order wins in two days, check details 

Shares of Rail Vikas Nigam Ltd (RVNL) rose over 7% on Tuesday after the state owned firm won  two orders in two days. RVNL won a Rs 404.40 crore contract from East Coast Railway for "Koraput-Singapur Road Doubling Project: Execution of 27 Nos of Major Bridges."

"It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from East Coast Railway for “Koraput-Singapur Road Doubling Project: Execution of 27 Nos of Major Bridges i.e. (22 Nos of Major Bridges & 5 Nos of ROBs) and earth work in formation of approaches, protection works and other connected miscellaneous works between Tikiri and Bhalumaska stations in connection with Koraput-Singapur Road Doubling Project of Waltair Divison, East Coast Railway,” said RVNL today. 

On Monday, the state-owned firm said it won a Rs 137-crore contract from Central Railway for Bhusaval-Khandwa project. 

"It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from Central Railway for Design, Supply, Erection, Testing & Commissioning of 132/55 KV Traction Substation, Sectioning post (SPs) and Sub sectioning post (SSPs) in 2 x 25 KV Traction System (Scott Connected Transformer) of Bhusaval - Khandwa Sections of Central Railway, to meet 3000 MT loading target on EPC mode," said RVNL.  

The order is to be executed in 24 months. 

Subsequently, RVNL stock rose 7.52% to Rs 439.90 on BSE in the current session. Market cap of RVNL stood at Rs 88,728 crore on BSE. RVNL shares have a one-year beta of 1.4, indicating high volatility during the period. 

In terms of technicals, the relative strength index (RSI) of RVNL stands at 31.7, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.    

RVNL said it has been declared the lowest bidder (L1) by Central Railway for a project involving the design, supply, erection, testing, and commissioning of a 132/55 KV traction substation, sectioning posts and sub-sectioning posts in the Bhusaval-Khandwa section.

RVNL reported a 27.24 per cent year-on-year (YoY) fall in its September 2024 quarter net profit. In the second quarter, profit came at Rs 286.88 crore as against Rs 394.26 crore in the year-ago period. Revenue from operations slipped 1.21 per cent to Rs 4,854.95 crore from Rs 4,914.32 crore in the corresponding period last year.

On a sequential basis, RVNL's profit climbed 28.12 per cent and revenue rose 19.18 per cent in the July-September 2024 quarter. In Q2 FY25, tax expenses slipped 0.49 per cent (YoY) to Rs 4,731.52 crore but surged by 17.21 per cent QoQ.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.