Rail Vikas Nigam Ltd’s share price rose by 4% after the company secured a ₹404 crore order from East Coast Railway. Investors are now awaiting the Q3FY25 results.
Rail Vikas Nigam Ltd (RVNL), a public sector undertaking under the Ministry of Railways, has seen its share price rise by up to 4% on February 5, 2025, following the announcement of a ₹404 crore order from East Coast Railway. The company, which focuses on the development of rail infrastructure in India, secured a significant order for the Koraput-Singapur Road Doubling Project.
The share price opened at ₹410.05 on the Bombay Stock Exchange (BSE), more than 2% higher than the previous day’s closing price of ₹400.20. It later surged to an intraday high of ₹416.30, marking a gain of more than 4%. Despite some of the gains being given up by the end of the session, investor sentiment remained positive due to the strong order update.
The order pertains to the construction of 27 major bridges, including 22 major bridges and 5 Road Over Bridges (ROBs), as well as earthworks, protection works, and other related activities between Tikiri and Bhalumaska stations in the Waltair Division of East Coast Railway. The project has a completion timeline of 30 months and is valued at ₹404.4 crore, including GST.
While the order has helped boost investor confidence, RVNL’s stock has witnessed a significant correction from its 52-week high of ₹647, recorded in July 2024. Despite this, the company’s order book remains strong and continues to grow, which is expected to support its future performance.
As RVNL prepares to report its Q3FY25 results, market participants are keeping an eye on its upcoming financial performance, which will be reviewed in the board meeting scheduled for February 12, 2025.
This growth story for RVNL highlights the importance of the expanding rail infrastructure in India, and the company’s role in supporting the nation’s railway development.
