Shares of Rail Vikas Nigam Ltd gained over 2% on Monday after the firm said it has emerged as the lowest bidder for a significant order valued at ₹213.22 crore from South Central Railway. The contract includes the design, supply, testing, and commissioning of overhead equipment (OHE) upgrades in the Vijayawada division. The project is expected to be completed within 24 months. RVNL’s announcement led to a 2.18% rise in its share price to Rs 403.90 against the previous close of Rs 395.25 on BSE.
Market cap of the firm stood at Rs 83,400 crore.
The multibagger railway stock hit a record high of Rs 647 on July 15, 2024. On the other hand, RVNL stock has risen 227% in two years and gained 1,228% in three years.
In period up to a year, the stock is down 4.18%.
The company had set a revenue target of ₹20,000 to ₹22,000 crore for FY26, although it fell short of its FY25 targets due to a weaker first half.
The stock’s performance, however, has been subdued, with a 7.5% decline observed this year despite the recent positive developments. The company’s performance has been lagging behind broader market trends, leading to cautious investor sentiment.
The competitive landscape for RVNL remains robust, as it competes with other infrastructure giants in the public sector. The recent contract win underscores RVNL’s strategic focus on securing substantial projects to fuel future growth. Industry experts suggest that maintaining strong execution timelines and securing additional contracts will be crucial for RVNL’s continued success and market performance.
Looking ahead, RVNL’s reaffirmation of its revenue guidance and its strategy to capitalise on competitive bids highlight its commitment to achieving substantial growth. The company anticipates that as projects advance, its financial performance will improve, thereby enhancing shareholder value.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
