Rail Vikas Nigam Limited (RVNL) experienced a significant uptick of nearly 4% in its shares following the announcement of a substantial order from Central Railway valued at ₹311 crore. The project entails the construction of tunnels and bridges in Madhya Pradesh, contributing to a 3.82% rise in RVNL’s stock on the Bombay Stock Exchange (BSE) with a substantial turnover of ₹8.17 crore.
RVNL’s market capitalization now stands at ₹33,506 crore. The Relative Strength Index (RSI) for RVNL is balanced at 47.7, while its one-year beta of 1.4 indicates higher volatility compared to the broader market. Despite this surge, RVNL’s stock price remains above its moving averages for various periods, except for the 30-day and 50-day periods.
As an integral part of Indian Railways, RVNL oversees projects from inception to completion. The newly secured project involves the construction of four tunnels spanning 1.6 kilometers and 28 bridges along the Dharakoh-Maramjhiri section within an anticipated 18-month timeframe. The comprehensive project scope encompasses laying ballastless track, constructing side drain retaining walls, linking tracks, supplying stone ballast, and executing earthwork for a third rail line.
In addition to the project announcement, RVNL reported its financial results for the second quarter, revealing a year-over-year profit increase of 3.4% to ₹394.3 crore. Sequentially, net profit surged by 15% from ₹343 crore. Revenue witnessed a marginal uptick to ₹4,914.3 crore compared to ₹4,908.9 crore in the corresponding period last year. Notably, income from other operations soared by 33% to ₹296 crore on a year-on-year basis. However, the company experienced a dip in EBITDA by 5.6% to ₹298.3 crore during the September quarter.
As of 11:32 am, RVNL shares continued their positive momentum, trading 2.23% higher at ₹160.40.
