PSU Railway stock jumps 4% after receiving ₹404 Cr order for road doubling project

A leading infrastructure giant, renowned for transformative railway projects across India, has secured another significant milestone in its portfolio. The company has clinched a major contract worth hundreds of crores from East Coast Railway for a strategic track doubling project, marking another step in strengthening the nation’s railway infrastructure.

Share Price Movement 

The share price of Rail Vikas Nigam Limited went up 4.05 percent to Rs. 416.30 per share on Wednesday, an increase from its previous close of Rs. 400.10 per share. The market capitalisation now stands at approximately Rs. 84,651 crore as of February 05, 2025.

What Happened 

Rail Vikas Nigam received the order from East Coast Railway for the Koraput-Singapur Road Doubling Project, involving the construction of 27 major bridges and earthwork, with a project worth Rs. 404 crore and a completion timeline of 30 months.

Q2 Financial Highlights

In Q2FY25, revenue stood at Rs. 4,869 crore, declining 0.8% YoY from Rs. 4,910 crore but growing 19.8% QoQ from Rs. 4,064 crore. Profit was Rs. 303 crore, down 18.1% YoY from Rs. 370 crore but up 39% QoQ from Rs. 218 crore.

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Competitors 

Rail Vikas Nigam Limited (RVNL) faces competition from major infrastructure firms like Larsen & Toubro, IRB Infrastructure, NBCC India, GMR Airports, Afcons Infrastructure, and KEC International, all key players in railway and construction projects across India.

Rail Vikas Nigam is currently trading at a P/E of  64.7, which is above the industry P/E of 23.12.

Market Outlook

India’s logistics sector, valued at over $200 billion, is undergoing major reforms to cut costs from 16% to 8% of GDP. Indian Railways, the world’s fourth-largest network, plays a key role in this transformation. 

With the National Rail Plan 2030, the focus is on boosting freight share to 45%, electrification, speed upgrades, and private sector participation. Modernisation efforts, including high-speed trains, smart technologies, and new freight corridors, aim to enhance efficiency, safety, and customer experience for a future-ready railway system.

Written By Fazal Ul Vahab C H

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