Rail Vikas Nigam Limited - RVNL LTD | Latest market updates

Stocks
1

RVNL secures L1 Bid for Rs 311 crore railway infrastructure project in Dharakhoh-Maramjhiri section

Rail Vikas Nigam Limited a prominent government company of India engaged in the business of implementing various types of railway infrastructure projects, has made a significant announcement regarding orders received by the company.

As per details in the report, RVNL secures the lowest bid (L1) for the project involving the construction of four tunnels with a total length of 1.6km, ballast-less track, earthwork in formation, key bridges (2), major bridges (1), minor bridges (25), stone ballast supply, track linking, side drains, and retaining walls, spanning from Km 831.8 to Km 841.9 in the Dharakhoh-Maramjhiri section as part of the third-line expansion.

The project cost is Rs 311 crore, and the project is to be completed within 18 months.

The shares of RVNL company opened the day at Rs 170.45, which was unchanged from the previous day’s closing price of Rs 169.80 each on the BSE. It reached intraday highs and lows of Rs 170.75 and Rs 165, respectively, and ultimately closed the session at Rs 166.55 each on the BSE.

The current market capitalization of the company is Rs 34,726 crore. The stock has exhibited impressive performance historically, generating a 157% return in the last six months and a 395% return in the last one year.

Rail Vikas Nigam Ltd (RVNL) is actively involved in executing diverse railway infrastructure projects as assigned by the Ministry of Railways. These projects encompass activities such as doubling of tracks, gauge conversion, new rail line construction, railway electrification, significant bridge construction, establishment of workshops and production units, and revenue sharing with the Railways in accordance with the concession agreements negotiated with the Ministry of Railways.

Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

4 Likes
2

RVNL Secures New Orders Worth Rs 47.37 Crore

About the order

Rail Vikas Nigam Limited (RVNL) has emerged victorious in two separate tenders. In the first project awarded by Central Railway, RVNL will be responsible for upgrading the signalling and telecommunication system in the Khapri-Sewagram section of the Nagpur Division. This project aims to implement Automatic Block Signaling, a technology that enhances safety and efficiency on railway lines. The contract value is approximately Rs. 47.37 crore (excluding GST) and needs to be completed within 12 months.

The second project involves collaboration. RVNL, along with its joint venture partner URC, has received a Letter of Acceptance (LoA) from Madhya Pradesh Metro Rail Corporation Limited (MPMRCL). This project entails the design and construction of an elevated viaduct, five elevated metro stations, and a ramp for the Indore Metro Rail Project. The stations include Shaheed Bagh, Khajrana Chauraha, Bengali Chauraha, Patrakar Colony, and Palasia Chauraha. This larger project is valued at Rs. 543 crore (excluding GST) and is expected to be completed within 1092 days.

These wins highlight RVNL’s expertise in both railway infrastructure development and metro rail projects, solidifying its position as a key player in India’s infrastructure development sector.

Financial Performance

In Q3FY24, the company posted a 6.44% decrease in its consolidated revenue at Rs 4689.33 crore compared to Rs 5012.09 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 579.74 crore, while the PAT of the company stood at Rs 328.55 crore, from Rs 338.51 crore last year in the same quarter.

Business Overview

Rail Vikas Nigam Ltd (RVNL) was incorporated as a 100% owned PSU of the Ministry of Railways (MoR) on January 01, 2003, with the twin objectives of raising extra-budgetary resources and implementing projects related to the creation and augmentation of the capacity of rail infrastructure on a fast-track basis. By March 2005, RVNL became fully functional and was empowered to act as an Umbrella SPV (Special Purpose Vehicle) to undertake project development, resource mobilization, etc.

Stock Price Movement

Today, the RVNL stock opened at Rs 251.05, with a high and low of Rs 257.55 and Rs 243.80, respectively. The stock closed trading at Rs 245.30, which increased by 3.07%. The stock has a 52-week high of Rs 345.60 and a 52-week low of Rs 60.30.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

1 Like
3

RVNL Bags Order Worth Rs 167 Crore

The shares of RVNL have delivered an impressive multibagger return of over 700% in the past three years.

Order Details

Rail Vikas Nigam Limited (RVNL) has secured a significant contract from the South Eastern Railway (SER) to upgrade the electric traction system on a crucial route. The project aims to enhance the railway’s capacity to handle heavier loads. The company emerged as the lowest bidder (L1) for the design, supply, erection, testing, and commissioning of the upgraded system.

The project involves doubling the traction power from a single 25 KV system to a double 25 KV system along the Rajkharsawan-Nayagarh-Bolani section of the Chakradharpur division. This upgrade is critical to achieving the South Eastern Railway’s target of handling 3000 MT loads. With a value of Rs 167.28 crore and a completion timeline of 18 months, the project promises a significant improvement in the railway’s infrastructure and freight handling capabilities.

Share Price Movement

Rail Vikas Nigam Ltd (RVNL) is currently trading at Rs 245.15, up 2.49% from its previous close of Rs 239.20. The stock opened slightly higher at Rs 246.75 and has seen a high of Rs 249.45 and a low of Rs 244.00 today. With a market capitalization of Rs 51,124.69 crore, RVNL falls under the civil construction industry category and is listed as Group A with a T+1 settlement type. It is also included in the S&P BSE 500 index. The stock has a 52-week high of Rs 345.60 and a low of Rs 63.70. It currently trades within a 20% price band, with an upper limit of Rs 287.00 and a lower limit of Rs 191.40.

About Company

Rail Vikas Nigam Ltd (RVNL) was established in 2003, as a Public Sector Undertaking of the Ministry of Railways (MoR). Its role is to raise extra-budgetary resources and implement projects related to rail infrastructure capacity. RVNL acts as an umbrella SPV for project development, resource mobilization, and financing structures. It mobilizes extra-budgetary resources through equity and debt from banks, financial institutions, multilateral agencies, and bilateral agencies for project execution through PPP. In 2004, IRFC was entrusted with raising funds from the market to meet capital expenditure for RVNL’s projects. RVNL was granted Mini Ratna-I status in September 2013 with a paid-up equity capital of Rs 2085 crore.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

4

RVNL rallies over 4% on securing a contract worth Rs 229 crore from AAI!

The stock has experienced significant buying activity, yielding multibagger returns of more than 302% in the last one year.

Today, shares of Rail Vikas Nigam Limited surged by over 4.28%, with the company’s current market capitalization standing at Rs 54,314.77 crore.

Recent Development:

RVNL has entered into a Memorandum of Understanding (MoU) with the Airports Authority of India (AAI) for the construction of a subway/underpass connecting the operational area to the AAI residential colony in Kolkata. The estimated cost of the project is Rs 229.43 crore.

About the Company:

Rail Vikas Nigam Ltd (RVNL), established in 2003 by the Government of India, specializes in executing diverse rail infrastructure projects assigned by the Ministry of Railways. These projects encompass doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, production units, and revenue-sharing agreements for freight with Railways.

Business Development:

In terms of product-wise distribution, the majority of the company’s focus lies in MoR Metro Projects, which constitute 82.91% of the total value, followed by a smaller allocation to SPVs (Special Purpose Vehicles) at 4.7%. There’s also a minor contribution from Project-specific ventures at 1.14%, while the remaining 2.02% falls under miscellaneous categories.

Regarding geographical distribution, the company operates entirely within India, with a 100% allocation of resources and projects within the country.

Shareholding Pattern:

In the December 2023 quarter, there was no change observed in the promoters’ holding, which remained steady at 72.84%. During the same period, there was a rise observed in the holdings of Foreign Institutional Investors (FII), increasing from 2.32% to 2.59%.

Furthermore, the stock has experienced significant buying activity, yielding multibagger returns of more than 302% in the last one year.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

5

Order Book of Rs 65,000 Crore: RVNL Secures Fresh Order

The company has successfully ventured into competitive bidding, securing projects worth more than Rs 34,000 crore in railways and other sectors

Indian benchmark indices kicked off the week with a buzz, witnessing Nifty and Sensex surging by over 0.60%. A majority of sectors painted a bullish picture, with Nifty Auto and Nifty Realty leading the charge, marking gains of more than 1.5%. However, the broader market showed a mixed performance, with Nifty Small-cap edging up by 0.34% while Mid-cap slightly dipped by 0.07%, resulting in weak market breadth.

Fresh Order

In the midst of this market activity, Rail Vikas Nigam Ltd (RVNL) has landed an intriguing development. The company received a Letter of Acceptance from Central Railway for “Signalling and Telecommunication work for provision of Automatic block signaling on Khapri-Sewagram Section of Nagpur Division.” The Central Railway awarded the order, with the project’s cost including GST totaling Rs 47,36,54,438.19.

Total Order Book

RVNL boasts a robust order book, standing at around Rs 65,000 crore as of December 31, 2023. Approximately 50% of these projects come from the Ministry of Railways (MoR) on a nomination basis, featuring a cost-plus margin structure. Despite the transition to competitive bidding for domestic railway projects by MoR, RVNL maintains strong revenue visibility for the next three years. The company has successfully ventured into competitive bidding, securing projects worth more than Rs 34,000 crore in railways and other sectors.

Leveraging its project management expertise and technical prowess, RVNL has diversified its order book beyond railways into areas like roads, irrigation, industrial manufacturing, and electrical works, which collectively constitute around 50% of the order book. However, railways remain the cornerstone of RVNL’s operations.

Vande Bharat Trains

Furthermore, RVNL has clinched an order to manufacture Vande Bharat trains in a joint venture (JV) with Russia-based railway rolling stock manufacturer “Metrowaganmash,” with RVNL holding a 25% stake. This project involves manufacturing and maintaining 125 Vande Bharat trains over 35 years. While this venture marks new territory for RVNL, the proven track record of the JV partner is expected to bolster order execution.

The stock has witnessed an impressive surge of over 250% in the past year and a staggering 795% in the last three years, establishing itself as a multibagger stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

6

RNVL Wins an EPC Contract From South Central Railways Worth Rs.440 Cr

RVNL, a major player in the Indian railway development, received a Rs.440 crore order for an Aurangabad rail doubling and electrification project by South Central Railways.

Rail Vikas Nigam Limited is a Public-Sector Undertaking (PSU) under the Ministry of Railways. It was incorporated in January 2003 to implement the National Rail Vikas Yojana (NRVY), an initiative by the then Hon’ble Prime Minister Shri Atal Bihari Bajpayee. It works on fulfilling the dual objectives of raising extra-budgetary resources and implementing projects relating to the creation and augmentation of the capacity of rail infrastructure in a fast-track manner. Its line of work comprises infrastructure development in the form of construction of major bridges, railway electrification, metro projects, workshops, etc.

RVNL Financials and Business Performance:

RVNL generated a revenue of Rs.21732.58 Crore in FY 2023-24. It reported a 33.16% increase in consolidated net profit to Rs 478.40 crore in Q4 FY24. RVNL acts as a project executing arm for the Indian Railways and contributes around 30% of the infrastructure development of the Indian Railways, each year. It is ranked 1st among railway PSUs 8 times in the previous 10 years. As of March 2023, it has completed around 140+ Projects with more than Rs.1 Trillion Cumulative project expenditure since inception. The company has significantly contributed to the “Atmanirbhar Bharat” Scheme by building workshops.

The Letter of Acceptance:

RVNL has recently received a Letter of Acceptance for an engineering, construction, and procurement (EPC) order, worth Rs.440 Crore, from South Central Railways. The Aurangabad-Ankai Doubling Project in the Nanded division of the South Central Railway involves doubling the track between Ankai station and Karanjgaon stations, along with electrification and signaling operations. The project will be carried out over a 30-month timeframe.

RVNL Stock:

RVNL opened its IPO, with a 12% stake at Rs.17-Rs.19/ share on 29 March 2019. It was listed on BSE and NSE on 19 April 2019. Rail Vikas Nigam’s share price currently trades at Rs.361.50 a piece.

Conclusion: RVNL is a strong and successful player in the Indian Railways sector. Their strong financial performance and contribution to the railways infrastructure development is subject to their successful project completion since inception. The recent EPC order indicates continued business opportunities. However, the stock price has seen a decline today.

7

RVNL Bags Rs 156 Crore Order from Southern Railways

The Railway PSU, RVNL Ltd. has said that it has received an order from Southern Railway for automatic signaling work worth about Rs.156 crore.

Rail Vikas Nigam Ltd was Incorporated in 2003 by the Govt. of India, it is engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered into with Ministry of Railway. The company has a total market capitalization of more than Rs.85,000 crores. The company was also granted ‘Navratna’ status last year.

RVNL Bags Rs.156 crore order

The KRDCL-RVNL joint venture has been awarded a project worth Rs 156.47 crore by Southern Railway. This project involves automatic signaling work on the Ernakulam Junction (ERS) to Vallattol Nagar (VTK) section on the B-Route of the Thiruvananthapuram Division.

The order, valued at Rs 156 crore, will be executed within a period of 750 days. The acceptance of this project, as indicated by the letter of acceptance (LoA) received from Southern Railway, highlights the JV’s expertise in railway infrastructure projects and its significant role in enhancing railway signaling systems in Southern India.

RVNL stock jumps 2%

With this order win the stock of RVNL surged over 2% in today’s morning trading session and has made a day high of Rs.420.85 a piece and is currently trading at a price of Rs.414.65 a piece The stock is now up by 9% in the past one month and is up by 233% in the past one year.

Conclusion

The awarding of the Rs 156.47 crore project to the KRDCL-RVNL joint venture by Southern Railway for automatic signaling work on the Ernakulam Junction to Vallattol Nagar section signifies a crucial development. Scheduled to be completed in 750 days, this project aims to significantly enhance the railway signaling systems in the Thiruvananthapuram Division. The successful acceptance of this project showcases the JV’s expertise in large-scale railway infrastructure. Following this announcement, the stock saw a 2% increase, reflecting positive market sentiment towards the venture’s expanding portfolio.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.