RVNL shares in focus as Care Edge reaffirms credit rating 

Shares of Rail Vikas Nigam Ltd (RVNL), a Navratna PSU under the Ministry of Railways, are in focus as credit rating firm Care Edge has reaffirmed its rating. Its rating for long term bank facilities have been enhanced from Rs 20 crore to Rs 30 crore and credit rating has been reaffirmed at CARE AAA; Stable. 

Similarly, long term /short term bank facilities' rating have been enhanced to Rs 8,500 crore from the earlier Rs 6,480 crore.  Rating for the same has been reaffirmed at CARE AAA; Stable /CARE A1+.  

RVNL shares closed at Rs 371.55 in the previous session on BSE.

On the other hand, RVNL stock has risen 474% in two years and gained 964.61% in three years despite the short term correction. The RVNL stock ended higher for the fifth straight session on Monday. Market cap of the firm rose to Rs 77,468 crore. 

RVNL shares have a one-year beta of 1.6, indicating high volatility during the period. 

In terms of technicals, the relative strength index (RSI) of RVNL stands at 57.2, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading lower than the 50 day, 100 day, 150 day, 200 day but higher than the 5 day, 10 day, 20 day and 30 day moving averages. 

RVNL reported a 13.1% year-on-year (YoY) fall in net profit at Rs 311.6 crore for the third quarter that ended December 31, 2024 against a net profit of Rs 358.6 crore on a year on year basis.

Revenue slipped 2.6% to Rs 4,567.4 crore in Q3 against Rs 4,689.3 crore in the year-ago period.

At the operating level, EBITDA (earnings before interest, tax, depreciation, and amortisation) was fell 3.9% YoY to Rs 239.4 crore in Q3FY25 against Rs 249 crore on a YoY basis. The EBITDA margin was largely flat at 5.2% compared to 5.3% in the corresponding period in the previous fiscal.

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.