RVNL shares rally over 4% on ₹167-crore order win from South Eastern Railway

Rail Vikas Nigam Ltd shares rallied more than 4% on Thursday after the state-owned company announced bagging a contract worth ₹167 crore from South Eastern Railway.

After the announcement, RVNL shares jumped as much as 4.26% to hit a high of ₹249.4 per share on the NSE, as more than 1 crore shares changed hands on the exchange.

The Indian Railways public sector undertaking (PSU) informed the stock exchanges in a filing that it has emerged as the lowest bidder for a railway project of South Eastern Railways.

The project worth ₹167.28 crore is related to design and commissioning for upgradation of electric traction system for Rajkharsawan-Nayagarh- Bolani section of Chakradharpur division of South Eastern Railway.

The upgradtion will help meet 3000 MT loading target. The project is to be implemented in 18 months, the company informed the exchanges.

RVNL last week had bagged a contract worth ₹339 crore from Maharashtra Metro Rail Corporation Limited for design and construction of elevated viaduct of 4.519 km on the North-South Corridor of Pune Metro Rail Project.

RVNL this month has announced winning as many as 11 new orders from Madhya Pradesh Power Transmission, Rajasthan Rajya Vidyut Prasaran Nigam, and Maharashtra Metro Rail Corporation and other agencies.

Regular order flows have boosted the RVNL shares in the past year as the stock skyrocketed around 283% in the period.

RVNL shares are trading around 2.95 times higher than the 52-week low of ₹63.50 per share hit on March 21, 2023. The stock is however 27% down from its 52 week high levels.

The company reported a consolidated net profit of ₹358.57 crore in the December quarter of FY24, down by 6.24% over the year ago period. Its revenue was also down 6.4% at ₹4,689.3 crore in the third quarter compared to ₹5,012.1 crore in the December quarter of FY23.

RVNL shares were trading 2.49% higher at ₹245.15 apiece on NSE at 12:40 PM.