Shares of Rail Vikas Nigam Ltd (RVNL) surged by nearly 3% to ₹342.90 after the company announced that it had received a Letter of Acceptance (LoA) from Rail Infrastructure Development Company (Karnataka) Ltd (K-RIDE). The LoA pertains to the construction of nine stations under Corridor-4A of the Bengaluru Suburban Rail Project (BSRP).
As per the filing, the ₹554.47 crore contract involves the construction of one elevated station and eight at-grade stations at various locations including Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, and Kaggadasapura. The scope of work includes civil, structural, and architectural components, along with E&M works.
The project will be executed over a period of 24 months through a joint venture, where RVNL holds a 51% stake and Rithwik Projects Private Ltd holds a 49% stake. The contract is expected to bolster the company’s infrastructure capabilities, particularly in the suburban rail sector.
In Q3 FY25, RVNL reported a 13.1% decline in net profit, which fell to ₹311.6 crore compared to ₹358.6 crore in the same quarter last year. The company also reported a 2.6% decline in revenue, which stood at ₹4,567.4 crore for Q3FY25, compared to ₹4,689.3 crore in the previous year.
As of now, RVNL’s shares are priced at ₹342.90, reflecting a 2.86% increase from the previous close of ₹333.35. The stock has a market capitalization of ₹713.35 billion, with a P/E ratio of 54.95.
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