Rail Vikas Nigam Ltd (RVNL) clinched a significant order worth Rs 193 crore from Rajasthan Rajya Vidyut Prasaran Nigam Ltd, as announced in a BSE filing on Tuesday. The contract involves the construction of eight new 132 kV GSS (Grid Substations) and associated lines, along with the supply and installation of all necessary equipment and materials. Despite this positive development, RVNL’s stock witnessed a slight dip, trading 1.10 percent lower at Rs 242.60.
Amidst the recent order wins, including four projects secured this month and emerging as the lowest bidder for two projects, RVNL’s market performance seems to be under scrutiny. Analyzing the technical setup, the stock is currently trading below short-term SMAs while maintaining position above longer-term averages. The 14-day relative strength index (RSI) stands at 45.12, indicating a neutral sentiment among investors.
RVNL’s financial indicators present a mixed picture, with a price-to-equity (P/E) ratio of 37.20 and a price-to-book (P/B) value of 7.20. The company’s earnings per share (EPS) are reported at 6.59, with a return on equity (RoE) of 19.34. However, in its third-quarter results for FY24, RVNL recorded a 6.20 percent decline in net profit, amounting to Rs 358.6 crore, compared to Rs 382.4 crore in the previous year. Revenue from operations also witnessed a 6.40 percent drop, settling at Rs 4,689.3 crore.
Despite the recent market downturn, promoters maintain a significant stake in the company, holding 72.84 percent as of December 2023. RVNL operates as the executing arm of Indian Railways, undertaking various projects on a turnkey basis. Its responsibilities span the entire project lifecycle, from conceptualization to commissioning, encompassing design, contract management, and project execution.
Investors are closely monitoring RVNL’s performance in light of its recent contract wins and financial results, assessing its resilience amidst market fluctuations and its ability to deliver on its ongoing projects.
