RVNL shares surge over 3% on emerging lowest bidder for Southern Railway project

The company in a regulatory filing said that it emerged as the L1 bidder for upgradation work of electric traction system from 1x25 kv to 2x25 kv traction system for Salem-Podanur and Irugur-Coimbatore-Podanur section of the Salem division of Southern Railway to meet 3000 MT loading target.

The project has to be completed within 24 months and the cost of project is worth ₹143 crore, RVNL said.

Last month, CARE Edge Ratings confirmed AAA ratings for RVNL's long-term bank facilities as it cited RVNL’s strong managerial and financial linkages with government of India with 72.84% ownership.

“Ratings also derive strength from RVNL’s significant execution capabilities in the railway segment and its strong orderbook position of ₹96,780 as on January 31, 2025, with 49% of the projects from Ministry of Railways (MoR) on a nomination basis having a cost-plus margin structure,” CARE Edge said.

“As on January 31, 2025, the company’s orderbook stood at over ₹96,780 crore with a revenue visibility of over 4.45 times the FY24 income from operations. Earlier, the company used to be nominated by the MoR for railway projects, which shifted to a competitive bidding basis. CARE Ratings takes cognisance of RVNL procuring ₹49,000 crore of projects on competitive bidding basis of the total outstanding orderbook. CARE Ratings further believes that RVNL will continue to secure a comfortable portion of such tenders under the bidding system by its long-standing experience in executing railway projects,” the ratings agency said.

RVNL shares have seen a massive correction from its 52-week high of ₹647 it touched in July last year.

As of 1:33 pm, RVNL shares traded 2.04% higher at ₹344.45, outperforming the BSE 200 index which was up 1.89%.