Synopsis: Railway stock in focus after emerging as lowest bidder for a railway project involving track expansion and bridge construction, strengthening its order book and execution visibility over coming years ahead further.
The shares of this mid cap company majorly engaged in in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines and many more were in focus after emerging as L1 bidder for a significant project worth Rs. 967 Crores
With the market capitalization of Rs. 64,719 Cores, the shares of Rail Vikas Nigam Limited reached an intraday high of Rs. 312 per share raising nearly 6 percent from its previous day closing of Rs. 294 per share and is trading at a P/E of 56.4 whereas industry P/E stands at 16.7
What is the NEWS
Rail Vikas Nigam Limited has emerged as the lowest bidder (L1) for a project awarded by East Coast Railway. The project will be executed in EPC mode within a period of 3 years. The total contract value stands at Rs. 967.92 crore. The work includes the construction of the 3rd and 4th railway lines between Nergundi–Barang (22 km) and Khurda Road–Vizianagaram (363 km), covering a total section of 385 km.
It also involves building key bridges such as Bridge No. 539 (16×30.5 m) over river Birupa, Bridge No. 544 (32×65.84 m) over river Mahanadi, Bridge No. 553 (18×45.70 m) over river Kathjori, and Bridge No. 557 (20×45.70 m) over river Kuakhai.. The order is from a domestic entity and does not involve any related party transactions, adding a significant project to the company’s existing order pipeline.
About the company and Financials
Rail Vikas Nigam Ltd is engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered into with Ministry of Railway.
The total order book as of Q3 FY26 stood at Rs. 87,000 crore. Of this, railway nomination projects contributed aroundRs. 40,000 crore, while competitive bidding wins accounted for about Rs. 47,000 crore. Railways formed 45 percent of the order book, followed by roads at around 10 percent .
The electrical segment including RDSS distribution work across four states, transmission lines, and railway electrification contributed around 15 percent , while signalling and telecom made up another 15 percent . The mechanical segment, which includes RVNL’s share in Vande Bharat and workshop projects, contributed about 7 percent , with the remaining portion coming from international projects.
Year on Year analysis: Revenue from operations has increased from Rs. 4,567 Crores to Rs. 4684 Crores, up 2.5 percent. Operating profit has decreased from Rs. 239 Crores to Rs. 221 Crores, down 7.5 percent and net profit has increased from Rs. 312 Crores to Rs. 324 Crores, up 3.8 percent
Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 5123 Crores to Rs. 4684 Crores down 8.5 percent. Operating profit has increased from Rs. 217 Crores to Rs. 221 Crores, up 1.8 percent and net profit has increased from Rs. 231 Crores to Rs. 324 Crores, up 40 percent
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