Amidst the ups and downs in the stock market, a very positive news has emerged for the leading railway company Rail Vikas Nigam Limited (RVNL). This Navratna PSU company has received a new contract worth Rs 221.33 crore from South East Central Railway. This entire project has been allotted under the Engineering, Procurement and Construction (EPC) model, which will be mainly executed in the state of Chhattisgarh.
The appearance of 15 railway stations will change
Common railway passengers will directly benefit from this huge project. Actually, the company will upgrade 15 different stations in Bilaspur division of South East Central Railway with modern technology. Talking about work, the old panel interlocking system installed at the stations will be completely removed. In its place, state-of-the-art electronic interlocking system will be installed, which will make the operation of trains more safe. Along with this, indoor-outdoor signaling equipment, construction of optical fiber cable (OFC) huts and service buildings related to signaling will be prepared. The company itself will do all the necessary work from electricity to cabling in these buildings.
Mega project will be completed within 730 days
A strict target has been set to complete this project received by the government railway unit within the time limit. The company has to complete this entire work within just 730 days i.e. about two years. According to the company management, this new contract is an important part of their regular business operations. Let us tell you that last month on May 20, this PSU had received a big project worth Rs 129.46 crore from North Eastern Railway. This company also became the winner by quoting the lowest bid in the project to increase the capacity of electric traction power supply system in Varanasi-Prayagraj section.
Market disappointed due to big decline in profits
Even though the company has been consistently performing well on the order book front, the recent financial results have been a matter of concern for investors. In the fourth quarter (March quarter) of the financial year 2025-26, the consolidated net profit of the company has fallen by 58.9 percent to just Rs 187.1 crore. Whereas in the same period exactly a year ago, the company had registered a profit of Rs 455.4 crore. However, during this period, there has been a slight increase of 4.2 percent in the total revenue of the company, which has now increased to Rs 6,696 crore.
Heavy selling pressure in stock market
The stock of this Navratna company has reached the level of Rs 233 with an increase of 2% today. At the close of the market on June 8, the company’s shares fell by 3.44 percent to Rs 227.50. Heavy pressure has been seen on the stock for some time now. This stock has fallen by 25.41 percent in the last one month, whereas in the last one year it has registered a huge decline of 47.31 percent. However, for long-term investors this stock has proved to be a multibagger, giving a whopping return of 615.41 per cent in the last five years. At present the total market cap of the company is Rs 47.55 thousand crore.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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