RVNL Shares rises upto 8% on Order Win Amid Dismal Technics

Shares of Rail Vikas Nigam Ltd. (RVNL) jumped nearly 8% in Monday's trading, as investors rallied behind a string of recent contract awards in rail, metro, telecommunication, and highway segments. The state-owned infrastructure company, which is an active participant in railway and allied development projects, is seeing increased momentum in light of increasing order visibility. 

Stock Performance

As of 12:40 PM IST, RVNL stock was trading at ₹350.55, representing a rise of up to 8.46% from its last close of ₹323.10. The upsurge follows a small dip in the previous session, where the stock had closed at ₹331.45 on the NSE.

Contract Momentum Drives Optimism

Recent order wins have boosted market sentiment for RVNL. The company secured a ₹554 crore highway project under NHAI, along with a ₹143 crore contract from Southern Railway. Additionally, RVNL emerged as the lowest bidder for a ₹5,000 crore telecom infrastructure project, while also winning an ₹837 crore Eastern Railway project. Further strengthening its order book, RVNL secured a ₹270 crore metro contract in Maharashtra and multiple projects from Central, South Western, and East Coast Railways, totaling over ₹695 crore. These contract wins have contributed to a positive market outlook for the company.

Financial Performance

 Rail Vikas Nigam Ltd. (RVNL) reported its financial performance for the fourth quarter of FY25. The company achieved a consolidated total income of ₹4,836.06 crore, marking a decrease of 5.84% quarter-on-quarter and 3.61% year-on-year. The consolidated net profit after tax for the quarter stood at ₹311.44 crore. For the entire fiscal year 2024-25, RVNL's consolidated total revenue reached ₹23,074.80 crore, reflecting an 8.44% increase from the previous year, while the consolidated profit after tax rose by 10.82% to ₹1,574.30 crore.

Return Metrics and Dividends

RVNL has delivered exceptional shareholder returns, posting a 3-year gain of over 960% and a 5-year return exceeding 1,840%, far outperforming broader market indices. In May 2024, the company declared a final dividend of ₹2.11 per share, translating to a dividend yield of around 0.60%.

Valuation and Market View

The firm is trading at around 56 times earnings with a price-to-book of around 7.7. Although long-term fundamentals are underpinned by a robust order book, valuations are high. Promoters held a 72.84% stake as of March 2025. FIIs reduced their holding marginally to 5.06%, while DIIs raised exposure to 6.21%. RVNL continues to deepen its footprint in the infrastructure sector with the support of consistent government expenditure and project implementation across industry segments.

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