RVNL share price: 2 reasons why the railway stock is up 3% today

Shares of Rail Vikas Nigam Ltd (RVNL) climbed 3 per cent today after the railway PSU emerged as L1 for Rs 115.79 crore order from Central Railway and as credit rating agency Care Edge reaffirmed its ratings on long-term bank facilities availed by the company.

The stock rose 3.35 per cent to hit a high of Rs 384 on BSE. The PSU said it has emerged as the Lowest Bidder (L1) from Central Railway for “OHE modification work for up-gradation of existing 1x25 KV electric traction
system to 2x25 KV at feeding system in Itarsi-Amla section in Nagpur division of Central Railway to meet 3000 MT loading target." The order would take 24 months to get executed.
CARE Ratings maintained its CARE AAA rating with 'Stable' outlook on Rs 30 crore long term bank facilities. It also retained its CARE AAA/CARE A1+ ratings on Rs 8,500 crore worth long term/short term bank facilities.

That said, the stock cut gains as the session progressed, as Munna Kumar, Executive Director (BD&P) has been relieved from the services w.e.f. 11.03.2025, consequent upon acceptance of his resignation. He ceased to be a part of Senior Management Personnel of the company.

Last week, the stock made headlines after the railway PSU secured a Letter of Acceptance (LoA) from the National Highways Authority of India (NHAI) for the construction of a six-lane, access-controlled road in Andhra Pradesh under the hybrid annuity model.

The project, valued at Rs 554.64 crore, is scheduled to be completed within 730 days, according to RVNL. It involves constructing a six-lane access-controlled road linking Visakhapatnam Port Road to the Sheelanagar junction on NH 516C, covering the Sabbavaram bypass of the Anakapalli-Anandapuram corridor. RVNL had announced on March 11 that it emerged as the Lowest Bidder (L1) for this project.

Additionally, earlier this month, the company received a LoA from South Western Railway for engineering, procurement, and construction (EPC) services, including the design, supply, erection, testing, and commissioning of a 2X25 KV OHE & PSI system, along with related electrical and telecommunications works.