RVNL emerged as the lowest bidder (L1) for Nagpur Metro project worth Rs.187.34 Cr

Rail Vikas Nigam Limited (RVNL) operates in various sectors within the railway infrastructure sector, taking up diverse projects such as new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, and construction of cable-stayed bridges, etc.

RVNL Emerges as L1  

RVNL has secured a significant contract from Maharashtra Metro Rail Corporation (Nagpur Metro) worth Rs.187.34 Cr to construct elevated metro stations in Nagpur. The company emerged as the lowest bidder (L1)  for the project, which includes the construction of six elevated metro stations in Reach 2B of the Nagpur Metro Rail Project (NMRP) Phase 2. 

Details of The Contract

The contract, valued at Rs.187.34 crore, encompasses the construction of key stations including Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club, and Kanhan River Metro Station. RVNL is to complete the project within a timeline of 30 months.

Financial Performance 

In terms of financial performance, RVNL reported a notable increase of 33.16% in consolidated net profit, amounting to Rs.478.40 crore during Q4FY24, compared to Rs.359.25 crore in Q4FY23. Revenue from operations also witnessed a significant uptick, rising by 17.38% Y-o-Y to Rs.6,714.01 crore during Q4FY24.

Market Reaction 

The share price of RVNL experienced a significant surge, climbing by 7.92% to reach a peak of Rs.399.70. Subsequently, the stock was observed trading at Rs.382.20, marking a 3.20% increase.  Notably, RVNL’s stock has shown remarkable growth, registering a gain of 110% on a YTD basis, positioning RVNL as a multi-bagger, reflecting strong investor confidence and market optimism toward the company’s prospects.

Conclusion: RVNL’s successful bid for the Nagpur Metro project brings out its position as a key player in the railway infrastructure sector. However, the regulatory fine highlights the importance of compliance with governance norms in maintaining transparency and accountability within the organization.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.