RVNL shares rise over 3% on fresh order win, check details

RVNL share price: Rail Vikas Nigam Limited (RVNL) shares rose over 3% in the afternoon session on Friday on the back of a deal win. The state-owned firm said it has emerged as the lowest bidder (L-1) from Southern Railway for upgradation work of electric traction system for Salem Junction-Podanur Junction & Irugur-Coimbatore Junction-Podanur Junction section of Salem division of Southern Railway to meet 3,000 MT loading target.
 
Shares of RVNL rose 3.20% to Rs 348.35 against the previous close of Rs 337.35 on BSE. Market cap of the firm rose to Rs 71,933 crore. RVNL stock has risen 369% in two years and gained 893% in three years. 

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 42.3, 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, via an exchange filing, said, "It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from Southern Railway for Upgradation work of electric traction system from 1x25 kv to 2x25 kv traction system for Salem Jn. (SA)-Podanur Jn. (PTJ) & Irugur (IGU)-Coimbatore Jn. (CBE)- Podanur Jn. (PTJ) section of Salem division of Southern Railway to meet 3000 MT loading target." 

The cost of the project is Rs 143,37,87,127.90, while the order is expected to be executed in 24 months, or 2 years, RVNL said in an official statement.

RVNL logged 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.