Rail Vikas Nigam Ltd (RVNL) shares surged over 7% on Thursday morning. The company emerged as the lowest bidder for a Rs 270 crore project from Maharashtra Metro Rail Corporation. The project involves constructing ten elevated metro stations in Nagpur.
Seven stations will be built in Reach 3A and three in Reach 4A as part of the Nagpur Metro Rail Project Phase-2. RVNL is expected to complete the work within 30 months. In a separate development, RVNL reported that Foreign Institutional Investors (FIIs) increased their stake in the company during the July-September quarter.
FIIs now hold a 5.05% stake, up from 3.13% previously. RVNL was also awarded another project by the East Coast Railway. This Rs 283.70 crore contract involves constructing third and fourth lines between Jarapada and Talcher Road.
It also includes a new line between Angul and Balram.
Major contract secures RVNL growth
The project is slated for completion within 24 months.
The company has shown strong financial performance recently. In Q1 FY25, RVNL recorded a revenue of Rs 4064 crore, an operating profit of Rs 176 crore, and a net profit of Rs 218 crore. For the full year FY24, revenue stood at Rs 21733 crore, with an operating profit of Rs 1346 crore and a net profit of Rs 1463 crore.
RVNL, a Public Sector Undertaking under the Government of India, was incorporated in 2003. It implements various rail infrastructure projects assigned by the Ministry of Railways. These include doubling, gauge conversion, new lines, electrification, bridges, workshops, and production units.
The company’s shares have delivered returns of around 200% in the past year. RVNL’s current market capitalization stands at Rs 1.05 lakh crore. The stock opened at Rs 489.10 per share on Thursday, up from the previous day’s close of Rs 479.50 on the BSE.
