RVNL shares jump 10% in early deals, know why

RVNL shares surged 10.07% to Rs 462.75 on the BSE. RVNL’s market cap on the BSE stood at Rs 93,513 crore.

Rail Vikas Nigam Limited (RVNL) shares surged 10% in early deals on Monday after the state-owned firm said its joint venture with SCPL received a letter of acceptance from Eastern Railway for a Rs 837.67 crore project. In early deals, RVNL shares surged 10.07% to Rs 462.75 on the BSE. RVNL’s market cap on the BSE stood at Rs 93,513 crore. RVNL shares have a one-year beta of 1.5, indicating high volatility during this period. Technically, the Relative Strength Index (RSI) of RVNL is at 38.8, which indicates that it is neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading below 50 day, 100 day, 150 day but above 5 day, 10 day, 20 day, 30 day and 200 day moving averages. The project involves cutting and filling, blanketing, construction of minor and major bridges, RUB, ROB, retaining wall, level crossing, side drain, catch water drain, P.Way work and other ancillary works related to construction of multi-tracking railway BG line. RVNL said in a message to the stock exchanges, “M/s RVNL-SCPL (JV) has received letter of acceptance from Eastern Railway for earthworks in cutting and filling, blanketing, minor bridges, major bridges, RUBs, ROBs, retaining walls, level crossings, side drains, catch water drains, P.Way works and other ancillary works from 205,000 km to 260.2 km between Kalipahari (inclusive) to Pradhankhuta (exclusive) in connection with construction of multi tracking railway BG line.”

The order is to be completed in 36 months.

RVNL reported a 27.24 per cent year-on-year (YoY) decline in net profit for the September 2024 quarter. The profit in the second quarter stood at Rs 286.88 crore, as against Rs 394.26 crore in the same period a year ago. Revenue from operations was Rs 286.88 crore in the same period last year. Decreased 1.21 per cent to Rs 4,854.95 crore from Rs 4,914.32 crore.

On a sequential basis, RVNL’s profit grew 28.12 per cent and revenue grew 19.18 per cent in the July-September 2024 quarter. In Q2 FY25, tax expenses declined 0.49 per cent (y-o-y) to Rs 4,731.52 crore but grew 17.21 per cent quarter-on-quarter.

RVNL is an execution arm of Indian Railways and works on behalf of the ministry for projects assigned to it. It works on a turnkey basis and undertakes the entire cycle of project development from concept to commissioning, including the stages of design, preparation of estimates, calling and awarding of contracts, project and contract management.