RVNL shares in focus today, here’s why 

Shares of Rail Vikas Nigam Limited (RVNL) are in focus today as the public sector enterprise has inked an agreement (LoA) for an order worth Rs 143.3 crore from South Central Railway. The contract involves work of the electric traction system of Salem division of the Southern Railway.

RVNL stock ended 0.18% higher at Rs 391.35 on Friday. Market cap of the firm stood at Rs 81,597 crore.

The multibagger railway stock hit a record high of Rs 647 on July 15, 2024. On the other hand, RVNL stock has risen 220% in two years and gained 1194% in three years. 

In period up to six months, the stock is down 9.40%. 

“Rail Vikas Nigam Limited has received LOA from Southern Railway for ‘Upgradation work of Electric traction system from 1×25 kv to 2×25 kv traction system from Salem Jn. (SA)-Podanur Jn. (PTJ) & Irugur (IGU)-Coimbatore Jn. (CBE)-Podanur Jn. (PTJ) section of salem division of Southern Railway to meet 3000 MT loading target,” a stock exchange filing said on July 5.

The work involves upgrading the electric traction system from 1×25 kV to 2×25 kV traction system for Salem Junction – Podanur Junction & Irugur – Coimbatore Junction -Podanur Junction. Thorugh the updated system, Southern Railway will be able to meet the 3,000 MT loading target, according to the update.

The cost of the work is Rs 143.3 crore. The contract is to be completed within 24 months.

On June 30, the company was declared as the lowest bidder for an order worth Rs 213.22 crore from South Central Railway. In May, the company reaffirmed its revenue guidance of Rs 20,000 crore to Rs 22,000 crore for the ongoing fiscal, despite a subdued FY25 performance.

RVNL acts as the construction branch of the Ministry of Railways, dedicated to executing high-priority transportation infrastructure projects throughout India. The PSU has been instrumental in accelerating railway modernization and capacity enhancement efforts.