RVNL Shares Surge 3% as Company Secures Exciting New Order

In early trade on 3-Jan-2024, Rail Vikas Nigam (RVNL) share price surged nearly 3% following the company's acquisition of a 49% stake in the ₹123.36-crore Varkala Sivagiri project. At 2.52 pm, the RVNL stock was trading at ₹185.24 on the NSE.

RVNL, in collaboration with KRDCL, has gained approval for the upgrade of the Varkala Sivagiri railway station. The project, with a total cost of ₹123.36 crore, will be executed over the next 30 months. KRDCL takes the lead in this partnership with a 51% share, while RVNL holds the remaining 49%, as per an official filing with the exchange.

Partnership with REC

Rail Vikas Nigam (RVNL) and REC have teamed up for a strategic partnership. In this collaboration, RVNL will propose projects with assured or expected revenue, and REC will explore financing options for these projects, following predetermined conditions and returns. The main goal is to improve railway infrastructure and financial efficiency, representing advancement in the railway sector through the partnership between Rail Vikas Nigam and REC.

RVNL Performance

In the second quarter of FY24, the company recorded a 0.11% rise in its consolidated revenue, reaching ₹4,914.32 crore compared to the previous year's corresponding quarter, which was at ₹4,908.90 crore. Operating profit stood at ₹594.31 crore, and the PAT was ₹455.40 crore, showing an increase from ₹402.27 crore in the same quarter last year.

Rail Vikas Nigam's stock has been on the rise lately. In the last month, it went up by 7.83%. Zooming out a bit, it's been doing even better – a 51.91% increase in the last 6 months and a whopping 157.47% boost over the past year. Since it hit the stock market in April 2019, RVNL shares have shown remarkable growth, shooting up by an impressive 836.71%.

Final Words

Rail Vikas Nigam Limited is in the business of working on different types of rail infrastructure projects. This includes tasks like doubling existing tracks, converting gauges, building new rail lines, electrifying railways, constructing major bridges, establishing workshops and production units, and sharing freight revenue with Railways based on agreements made with the Ministry of Railways.