Shares of Rail Vikas Nigam Limited (RVNL) witnessed a notable increase, nearly 4%, following the announcement of securing a substantial order from Central Railway valued at ₹311 crore. The project, which encompasses the construction of tunnels and bridges in Madhya Pradesh, has injected positive sentiment into the market, resulting in a 3.82% rise in RVNL's stock on the Bombay Stock Exchange (BSE) with a significant turnover reaching ₹8.17 crore.
The company's market capitalization now stands at ₹33,506 crore (INR100 crore = approx. USD12 million). The Relative Strength Index (RSI) for RVNL is currently at a balanced level of 47.7, while its one-year beta of 1.4 signals higher volatility compared to the broader market. Despite this surge, RVNL's stock price remains higher than its moving averages for several periods, though it trails behind for the 30-day and 50-day periods.
RVNL, which operates as an arm of Indian Railways and manages projects from conceptualization to commissioning, has been tasked with constructing four tunnels totaling 1.6 kilometers and 28 bridges within an anticipated period of 18 months along the Dharakoh-Maramjhiri section. The comprehensive project scope includes laying ballastless track, building side drain retaining walls, linking tracks, supplying stone ballast, and performing earthwork to facilitate a third line.
In addition to the project news, RVNL reported financial results showing a profit increase of 3.4% year-over-year to ₹394.3 crore for the second quarter. Sequentially, net profit climbed by 15% from ₹343 crore. Revenue saw a marginal uptick to ₹4,914.3 crore compared to ₹4,908.9 crore in the same period last year. Notably, income from other operations jumped 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.
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