RVNL shares rally 10% on receiving LoA from Nagpur Metro

“Rail Vikas Nigam Limited has received Letter of Acceptance from Maharashtra Metro Rail Corporation Limited (Nagpur Metro) for “Construction of 6 Nos Elevated Metro Stations (Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club and Kanhan River Metro Station) between Ch. – 7576.78mm to Ch -13457.76m in Reach 2B of NMRP Phase 2,” said RVNL in a filing to the stock exchanges.

RVNL has stated that the estimated time for the completion of the project will be around 30 months.

Pushed by such strong order inflows and strong execution, the multibagger rail PSU stock is having a dream run as the stock has rallied by over 1800% in the past 2 years while displaying close to a 4 fold growth in the last one year alone.

RVNL’s order inflow in FY25 is guided to be in the range of Rs 20,000 crore - Rs 25,000 crore and it aspires to maintain a book to sales ratio in the range of 3x - 4x.

During the fourth quarter itself, the company's revenue, EBITDA, PAT grew by 17.4%, 22% and 33% YoY respectively as the order book at the end of the quarter stood at around Rs 85,000 crore.

In another news, the total market capitalization of PSU railway stock RVNL has crossed the Rs 1.11 lakh crore mark, which is greater than the total combined value of its peers , , , Texmaco Rail & Engineering, and .

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)