RVNL Wins Eastern Railway Project Bid; RVNL Share Prices Stable

The project has been taken up for completion in 24 months and involves the construction of the Sitarampur Bypass line under the Asansol Division of the Eastern Railway, at an approx cost of ₹390.97 crores. On 24th April, another huge project of ₹438.95 crores for redeveloping Thiruvananthapuram Central Railway Station under Southern Railway recently declared RVNL as the lowest bidder (L1) for execution. Further, the company has also been qualified for the lowest bidder position in a project worth ₹239.09 crore, which includes the installation of an automatic block signaling system between Jolarpettai Junction and Erode Junction in the Salem Division of Southern Railway.

The company released in a statement, “This is to inform that pursuant to Regulation 29 of the SEBI (LODR) Regulation, 2015, a notice is hereby given that a meeting of the Board of Directors of the Company will be held on 15th May 2024, inter alia, to consider and approve standalone and consolidated audited financial results for the fourth quarter and fiscal year ended March 31, 2024. The board will also consider recommending the final dividend for FY 2023-24, subject to its approval at the Annual General Meeting (AGM).”

RVNL specializes in implementation of a wide spectrum of railway projects including new railway lines, doubling of lines, conversion of lines, electrification of tracks, and development of metro projects, among others. Further, it undertakes fabrication of workshops, major bridges, cable-stayed bridges, and institutional buildings.

The civil construction company reported 6.24% decline in consolidated net profit to ₹358.57 crore on 6.44% fall in revenue from operations to ₹4,689.33 crore in Q3 FY24 over Q3 FY23.

What would take the center-stage for the month is the Navratna railway powerhouse, RVNL. Having taken many by surprise with a stronger-than-expected operational show in the previous quarter, the company is expected to recommend a final dividend of its shares on May 15, 2024. Tagged as a multibagger, RVNL has been recommended with a strong buy and an ambitious target price of ₹340. Successive wins of projects and a strong order book have placed the company at a very attractive position on the stock exchanges for investment for long term.

In its latest thematic report, Brokerage firm Prabhudas Lilladher said, "The stock has picked up well from the significant 50EMA level of 252 to gain strength and has moved past the previous peak zone of 271 levels to improve the bias and further rise is anticipated. The RSI has spiked after the consolidation period signaling a buy." Accordingly, Prabhudas' note said, "With the chart looking attractive, we suggest buying the stock for an upside target of 340 level keeping the stop loss of 255 level."

Rail Vikas Nigam Limited (RVNL) was incorporated as a Public Sector Undertaking. The entity aims to optimally manage the development, financing, and implementation of rail infrastructure projects in the country. Additionally, RVNL aims at mobilizing financial and human resources for the effective execution of projects.