RVNL Shares Rebound After 2 Days On Another Order Win From Central Railways

RVNL’s (Rail Vikas Nigam Limited) share price saw a positive turnaround on Wednesday, breaking its two-day losing streak.

What Happened: The company announced that it had been declared the lowest bidder for a significant order from Central Railways, as per a regulatory filing on Tuesday. The order, valued at approximately ₹132.59 crore, is slated for completion within two years.

Project Details: The order involves the modification of overhead equipment (OHE) to upgrade the existing 1 x 25 kilovolt electric traction system to a 2 x 25 kilovolt AT feeding system in the Wardha-Ballarshah section of the Nagpur division of Central Railway. This upgrade aims to meet a loading target of 3,000 million tonnes.

Historical Context: RVNL, a public sector enterprise under the Ministry of Railways, has been instrumental in the development of railway infrastructure in India. Established in 2003, the company has been involved in various projects to modernize and expand the Indian railway network, contributing significantly to the nation’s economic growth.

Recent Developments: Last month, RVNL secured a letter of acceptance from North Central Railway for a ₹72.73 crore project, expected to be completed within 455 days. This project involves automatic signaling work in the Dhaulpur-Gwalior section of the Jhansi division of North Central Railway. Additionally, RVNL announced the incorporation of an overseas subsidiary, RVNL Middle East Contracting L.L.C, in Dubai.

Financial Performance: In the past 30 days, RVNL has secured orders worth over ₹1,000 crore. Despite these substantial orders, the company’s share price has seen minimal movement, increasing by only around 2% in the last month. However, on Wednesday, RVNL’s share price rose by 1.73%, trading at ₹418.10 as the markets opened.

Summary:

• RVNL’s share price rebounded after a two-day decline.
• The company won a ₹132.59 crore order from Central Railways.
• The project involves upgrading the electric traction system in the Wardha-Ballarshah section.
• Last month, RVNL secured a ₹72.73 crore project from North Central Railway.
• RVNL has bagged orders worth over ₹1,000 crore in the last 30 days.
• Despite these orders, the share price increased by only 2% in the past month.
• RVNL’s share price rose by 1.73% on Wednesday, trading at ₹418.10.

Key Points for Competitive Exam Preparation:

• RVNL’s role and contributions to Indian railway infrastructure.
• Recent projects and financial performance of RVNL.
• Historical context of RVNL’s establishment and its impact on the Indian economy.
• Understanding the significance of railway infrastructure projects in economic development.