New Delhi: Rail Vikas Nigam Limited (RVNL) shares dropped after the presentation of Budget 2025 on February 1, 2025. However, the Railway PSU stock is expected to rise as the company has received a contract for road doubling project worth Rs 404.4 crore from East Coach Railway.
RVNL sealed the contract deal for the expansion of the road and construction of associated structures between Tikiri and Bhalumaska stations. Axis Securities has given a Buy rating on RVNL shares and set a target price of Rs 501. The brokerage firm said the company has an order back-log of Rs 83,221 crore till June 2024, which includes many sectors like railway EPC, coach manufacturing and electrification. The order book is impressive and this will help the company deliver stable earnings for the next 3-4 years.
Axis Securities backed RVNL, saying that the firm has a good track record of completing projects. The company’s CAGR is expected to be 8 percent between financial years 2023 to 2026, it added.
RVNL projects
RVNL’s ne project will include earth filling, safety related construction work and other necessary activities. The project is targeted to be completed within 30 months. Rail Vikas Nigam Limited has received Letter of Acceptance from East Coast Railway for “Koraput-Singapur Road Doubling Project: Execution of 27 Nos of Major Bridges i.e. (22 Nos of Major Bridges & 5 Nos of ROBs) and earth work in formation of approaches, protection works and other connected miscellaneous works between Tikiri and Bhalumaska stations in connection with Koraput-Singapur Road Doubling Project of Waltair Divison, East Coast Railway,” the company mentioned in a release.
Recently, RVNL had won a deal for the middle-mile network development project worth Rs 3,622 crore from Bharat Sanchar Nigam Limited (BSNL). In its Q3 Results 2024-25, RVNL stated that its net profit fell by 27 percent to Rs 286.9 crore. It was Rs 394.4 crore in October-December quarter in 2023-24.
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Initiating a Buy rating on Rail Vikas Nigam Limited (RVNL) shares, Axis Securities said the Railway PSU stock can rise to the level of Rs 501 per equity share. RVNL is a very popular stock in the market. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
