RVNL Shares Rise Over 3% on Fresh Order Win, Check Details
Shares of RVNL rose by 3.20%, reaching Rs 348.35 from the previous close of Rs 337.35 on the Bombay Stock Exchange (BSE).
- This rise came after Rail Vikas Nigam Limited (RVNL) secured a significant order win.
- The market capitalization of RVNL increased to Rs 71,933 crore following the uptick in stock price.
- Over the past two years, RVNL’s stock has surged by 369%, and in three years, it has gained an impressive 893%.
RVNL shares are known for their high volatility, with a one-year beta of 1.6, indicating that the stock can experience significant price fluctuations.
- Investors should note the potential for sharp price movements based on market conditions.
Technical Indicators and Market Performance
In terms of technical analysis, RVNL’s Relative Strength Index (RSI) stands at 42.3, suggesting the stock is neither in the overbought nor oversold zone.
- This indicates that RVNL is in a neutral trading condition.
- The stock is currently trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, signaling potential for price adjustment.
New Order Win for RVNL
RVNL recently announced that it has emerged as the lowest bidder (L-1) for an upgradation project from Southern Railway.
- The project involves upgrading the electric traction system from 1×25 kV to 2×25 kV for two key railway sections: Salem Junction-Podanur Junction and Irugur-Coimbatore Junction-Podanur Junction.
- The aim is to meet the 3,000 MT loading target for these sections in the Salem division of Southern Railway.
- The cost of the project is Rs 143.37 crore, and it is expected to be completed within 24 months.
Financial Performance in Q3FY25
In the third quarter (Q3FY25) ending December 31, 2024, RVNL reported a 13.1% YoY decline in its net profit, which stood at Rs 311.6 crore.
- This compares to a net profit of Rs 358.6 crore in the same period last year.
- Revenue for Q3FY25 fell by 2.6% YoY, dropping to Rs 4,567.4 crore from Rs 4,689.3 crore in Q3FY24.
At the operating level, EBITDA decreased by 3.9% YoY, standing at Rs 239.4 crore compared to Rs 249 crore in Q3FY24.
- The EBITDA margin remained largely flat at 5.2% compared to 5.3% in the same quarter last year.
RVNL’s Role and Future Prospects
RVNL operates as an executing arm of Indian Railways, handling projects assigned by the government.
- The company manages projects on a turnkey basis, which means it is responsible for the entire project cycle from conceptualization to commissioning.
- RVNL is involved in designing, preparing estimates, awarding contracts, and managing project execution, ensuring the efficient completion of rail infrastructure projects across India.
While Q3FY25 results showed some decline, RVNL’s order wins and role in key railway projects offer promising long-term prospects.
- The company’s focus on electrification and infrastructure development continues to align with India’s growth in rail network modernization.
Conclusion
RVNL shares rose following a key project win, indicating investor confidence.
- The company’s high volatility is reflected in its stock price movement, and while short-term financial results show some decline, its involvement in large-scale projects remains a strong growth driver.
- Investors will be keen to see how RVNL executes this new order and navigates future financial challenges.
