Synopsis : Rail Vikas Nigam Limited (RVNL), the Railway PSU granted Navratna status in 2023, has secured a fresh Rs 213 crore project from South Central Railway, even as its stock has soared 215% in two years despite recent corrections. This reflects continued growth in India's rail infrastructure push and RVNL’s rising significance in the PSU space.
Rail Vikas Nigam Limited (RVNL) has bagged a significant contract worth Rs 213.22 crore from South Central Railway, focused on OHE upgradation in the Vijayawada Division under Indian Railways. The project involves designing, supplying, erecting, testing, and commissioning for upgrading the existing 1X25kV system to a 2X25kV system, covering 195.5 RKM/391 TKM.
Despite winning the contract, RVNL’s stock closed lower on July 11 at Rs 380.95, down 0.97%. The PSU’s shares have shown stellar returns of 215% over the past two years, with even sharper growth of over 1100% in the last three years and over 1800% in five years, positioning it as a key performer in the railway PSU basket.
RVNL, now a Navratna PSU under the Ministry of Railways, was established to expedite rail infrastructure projects and augment capacity while raising extra-budgetary resources. It is also a component of the BSE 200 index. Despite near-term volatility with a 52-week high of Rs 647 and a low of Rs 305, the long-term trend underlines investor confidence in India’s railway infrastructure growth.
The company has a stable dividend history, paying Rs 2.11 in 2024 and Rs 2.13 in 2023, reflecting its focus on rewarding shareholders while maintaining growth momentum through new project wins and strategic rail infrastructure developments across India.
Disclaimer : This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making any investment decisions.
