Rail Vikas Nigam Limited (RVNL) has secured a massive ₹115.79 crores project from Central Railway, pushing its share price up by 1.7% to ₹377.85 per share on the National Stock Exchange (NSE). With this, RVNL's market capitalisation now stands at ₹78,782.48 crores, grabbing the attention of investors.
The latest contract involves upgrading the existing 1x25 kV electric traction system to 2x25 kV at the feeding system in the Itarsi-Amla section in the Nagpur division. This upgrade is part of efforts to meet the ambitious 3000 MT loading target. The work is expected to be completed in 24 months, adding yet another milestone to RVNL's growing list of achievements.
More wins, more growth
RVNL has been on a winning spree. Just days ago, the company secured a ₹554.64 crores project from the National Highway Authority of India (NHAI). The project involves constructing a six-lane access-controlled road to Visakhapatnam Port in Andhra Pradesh. Before that, it secured a ₹156.35 crores contract from Southern Railway for the engineering, procurement, and construction of a 2X25 kV Overhead Equipment (OHE) and Power Supply Installation (PSI) system.
With such a strong order book, RVNL is cementing its position as a major player in the infrastructure space. For those looking to invest in stocks, RVNL's continuous project wins signal confidence and long-term potential.
Financial performance: A mixed bag
While the contract wins are impressive, RVNL's financial performance in Q3 FY25 showed a dip. The company's Profit After Tax (PAT) dropped 13.1% to ₹311.6 crores, compared to ₹358.6 crores in the same period last year. Revenue also slipped by 2.6% to ₹4,567.4 crores, while Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) fell 3.9% to ₹239.4 crores.
Despite this, the company's continuous order flow suggests that it is on track for a strong comeback. With new contracts pouring in, RVNL has a promising road ahead, making it an interesting pick for those wanting to invest in stocks in the infrastructure sector.
The road ahead
RVNL's momentum is undeniable. From railway electrification to massive road projects, the company is expanding its footprint across India. With another big-ticket contract in the bag, it is clear that RVNL is not slowing down anytime soon.
As of March 25, 2025, at 11:15 AM, RVNL's stock was trading at ₹369.60 per share on the NSE. Investors and analysts are closely observing the company's next moves as it advances in the infrastructure sector.
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