RVNL shares: Shares of Rail Vikas Nigam Ltd (RVNL) jumped 3.2% to hit an intraday high of ₹348.35 on the BSE. The company informed exchanges that it has emerged as the lowest (L1) bidder for a project of the Southern Railway. On the National Stock Exchange, RVNL shares jumped 3.17%.
The company in a regulatory filing said it has emerged as the L1 bidder for the upgradation work of 1×25 kV to 2×25 kV traction system for Salem-Podanur and Irugur-Coimbatore-Podanur section of Salem division of Southern Railway to meet the 3000 MT loading target.
RVNL said the project is to be completed within 24 months and the project cost is ₹143 crore.
Last month, Care Edge Ratings affirmed AAA rating for RVNL’s long-term bank facilities, as it cited RVNL’s strong managerial and financial relationship with the Government of India with 72.84% ownership.
“The rating also draws strength from RVNL’s significant execution capabilities in the railway segment and its strong orderbook position of ₹96,780 as on January 31, 2025, with 49% of projects having cost-plus margin structure based on nominations from the Ministry of Railways (MoR),” Care Edge said. “As of January 31, 2025, the company’s orderbook stood at over Rs 96,780 crore, with revenue visibility of 4.45 times FY24 income from operations.
Earlier, the company used to be nominated by MoR for railway projects, which shifted to competitive bidding basis. CARE Ratings has taken cognizance of RVNL’s procurement of projects worth Rs 49,000 crore on competitive bidding basis of the total outstanding orderbook.
CARE Ratings believes that RVNL will continue to secure a comfortable share of such tenders under the bidding system due to its long experience in executing railway projects,” the rating agency said.
RVNL shares have seen a sharp decline from its 52-week high of Rs 647 hit in July last year. As of 1:33 pm, RVNL shares were trading 2.04% higher at Rs 344.45, outperforming the BSE 200 index, which was up 1.89%.
