Shares of Rail Vikas Nigam Limited (RVNL) saw a notable rise, by almost 4 per cent, following the announcement of securing a large order from Central Railway valued at ₹311 crore. The project, which includes construction of tunnels and bridges in Madhya Pradesh, injected positive sentiment into the market, leading to a 3.82 per cent rise in RVNL shares on the Bombay Stock Exchange (BSE) with a figure of Significant business reaching ₹8.17 crore.
The company’s market capitalization now stands at ₹33,506 crore (INR 100 crore = approximately USD 12 million). RVNL’s relative strength index (RSI) currently sits at a balanced level of 47.7, while its one-year beta of 1.4 signals higher volatility relative to the broader market. Despite this rise, RVNL’s stock price remains above its multi-period moving averages, although it lags in both the 30- and 50-day periods.
RVNL, which operates as an arm of the Indian Railways and manages projects from conceptualization to commissioning, has been tasked to construct four tunnels totaling 1.6 kilometers and 28 bridges within a scheduled time frame of 18 months on along the Dharakoh-Maramjhiri section. The overall scope of the project includes laying ballastless tracks, constructing side retaining walls, bonding tracks, supplying stone ballast and carrying out earthworks to facilitate a third line.
In addition to the project news, RVNL released financial results showing a 3.4% year-on-year profit increase to ₹394.3 crore for the second quarter. Sequentially, net profit jumped 15% from ₹343 crore. Revenue saw a slight increase to ₹4,914.3 crore as compared to ₹4,908.9 crore during the same period last year. Notably, revenue from other operations jumped 33% to ₹296 crore on an annual basis. However, the company witnessed a decline in EBITDA of 5.6% to ₹298.3 crore in the September quarter.
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