RVNL shares in focus on fresh contract win, check details 

Shares of Rail Vikas Nigam Limited (RVNL) are in focus today as the public sector enterprise under the Ministry of Railways, has secured an infrastructure contract valued at Rs 115.79 crore from Central Railway. RVNL stock ended 0.83% higher at Rs 375.90 on Thursday. Market cap of the firm stood at Rs 78,375 crore.

The multibagger railway stock hit a record high of Rs 647 on July 15, 2024. On the other hand, RVNL stock has risen 211% in two years and gained 1110.63% in three years. 

In period up to six months, the stock is down 10.46%. 

RVNL shares have a one-year beta of 1.6, indicating high volatility during the period. 

This initiative focuses on upgrading the electric traction system in Maharashtra, particularly aimed at enhancing the capacity for freight movement. The recently issued Letter of Acceptance (LOA) from Central Railway involves the modification of the Overhead Equipment (OHE), transitioning from the existing 1×25 KV system to a more efficient 2×25 KV Auto Transformer (AT) feeding system. The contract is to be executed in 24 months. 

"Rail Vikas Nigam Limited has received LOA from Central Railway for OHE Modification Work for Up-gradation of existing 1x25 KV Electric Traction System to 2x25 KV at Feeding System in Itarsi - Amla Section in Nagpur Division of Central Railway to meet 3000 MT Loading Target,” said RVNL.

This upgrade will take place in the Itarsi–Amla section of the Nagpur Division. The new traction system is engineered to accommodate freight trains carrying up to 3,000 metric tonnes (MT), a development expected to significantly enhance the operational efficiency of one of the region’s vital freight corridors.

The total contract value amounts to Rs 115,79,37,241.11, including all applicable taxes. RVNL confirmed the award through a stock exchange filing, noting that the contract was obtained in the regular course of their business operations. 

Established in 2003, RVNL acts as the construction branch of the Ministry of Railways, dedicated to executing high-priority transportation infrastructure projects throughout India. The PSU has been instrumental in accelerating railway modernization and capacity enhancement efforts.