Railway company shares will be in focus on July 7, 143 crore got a big order

RVNL Shares: Navratna Railway PSU Stock Rail Development Corporation Limited (RVNL) has received a big order of Rs 143.3 crore. The company said on Saturday that it has signed a compromise letter (LOA) for a new contract of Rs 143.3 crore with the South-Central Railway.

This project includes upgradation of electric traction system in Salem Division of Southern Railway. The company said in its stock exchange filing, Rail Development Corporation Limited has received LOA from Southern Railway for upgradation work of electric traction systems.

Capacity of Southern Railway will increase

Under this contract, RVNL is to be converted to Salem Junction – Podanur Junction and Irugur -Coimgur – Coimgur – Podanur Junction The existing 1×25 KV traction system is to be converted into a more advanced 2×25 KV system. With this upgrade, the capacity of Southern Railway will increase and 3,000 metric tonnes of freight can be met. RVNL said that the work of this project will be completed in 24 months and the cost of working is Rs 143.3 crore including tax.

RVNL shares

The company’s revenue in FY25 stood at Rs 20,000-22,000 crore despite a relatively low performance so far. On Friday, RVNL shares closed at Rs 391.2 per share on the National Stock Exchange (NSE). The high level of 52 weeks of the stock is Rs 647 and a low level of 52 weeks is Rs 295.25.

Preparations to move forward in nuclear energy space also

The company’s project portfolio includes construction of railway tracks, doubling of tracks, electrification, metro projects, major and cable-sight bridges and institutional infrastructure. Meanwhile, as a strategic move towards clean energy and stability, RVNL is also exploring the possibility of partnership in nuclear energy space. According to media reports, in June, the company spoke to form a small modular reactor (SMR) for its ongoing mega infrastructure projects, such as Rishikesh-Karnprayag railway line, with the company’s government-owned nuclear power company Rosatom.

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