RVNL shares end 2.5% higher on ₹143 crore order win from Southern Railway

Shares of Rail Vikas Nigam Ltd (RVNL), a railway infrastructure company, ended 2.5% higher in Friday’s intraday trade on April 11, reaching ₹346 apiece following the company’s latest order win from Southern Railway.

The company informed investors through an exchange filing today that it had emerged as the Lowest Bidder (L1) for a project from Southern Railway. The contract involves the upgradation of the electric traction system from 1x25 kV to 2x25 kV on the Salem Jn. (SA)–Podanur Jn. (PTJ) and Irugur (IGU)–Coimbatore Jn. (CBE)–Podanur Jn. (PTJ) section of the Salem division. The project aims to support a 3,000 MT loading target and is valued at ₹143.37 crore, as per the exchange filing.

This marks RVNL’s second order win in less than three weeks. In late March, the company also emerged as the L1 bidder for another contract from Central Railway. That project involves OHE (Overhead Equipment) modification work to upgrade the existing 1x25 kV electric traction system to 2x25 kV feeding system in the Itarsi–Amla section in the Nagpur division, also aimed at supporting a 3,000 MT loading target. The value of that contract stood at ₹115 crore.

During the same month, the company received a Letter of Acceptance from the National Highways Authority of India (NHAI) for the construction of a 6-lane access-controlled road connecting Visakhapatnam Port Road from Km 0.000 (Sabbavaram Bypass of Anakapalli–Anandapuram corridor) to Km 12.660 (Sheelanagar Junction) of NH-516C in Andhra Pradesh. The project, awarded under the Hybrid Annuity Mode (HAM), is valued at ₹555 crore.

Stock Price Trajectory

The stock has remained under significant selling pressure since reaching its all-time high of ₹647 apiece in July 2024, losing 48% of its value. This sharp decline has been attributed to profit booking, a slowdown in order inflows, and lower-than-expected fund allocation in the Union Budget 2025–26.

Between October 2022 and July 2024, the stock witnessed a stellar rally, surging from ₹33.70 to ₹601.50 — a massive gain of 1,700%. Despite the recent correction, the stock still holds a 901% gain over the last three years and a 1,787% return over the past five years.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.