Shares of Rail Vikas Nigam (RVNL) are expected to attract investor interest on Wednesday, 29 July, after the company secured an Engineering, Procurement and Construction (EPC) contract worth ₹358.97 crore from East Central Railway.
The contract involves doubling the 41-km Sitamarhi-Raxaul railway section under the Samastipur Division of East Central Railway, including the construction of bridges, stations, platforms, earthwork, and other associated civil infrastructure.
According to the company’s regulatory filing, the contract is domestic in nature and is scheduled to be executed within 1095 days.
The company also clarified that neither its promoter nor promoter group entities have any interest in the awarding authority, and the contract does not qualify as a related-party transaction.
The latest order comes close on the heels of another major contract win. In June, RVNL received a Letter of Acceptance (LoA) from East Coast Railway for the construction of four major railway bridges under the third- and fourth-line project between Nergundi-Barang and the Khurda Road-Vizianagaram section. The contract was valued at ₹968 crore.
This marks another significant order win for the state-run company. In mid-June, RVNL secured a ₹2,977 crore contract from NMDC for setting up buffer stockpiles and a blending yard with a handling capacity of 10 MTPA at Vizag, Andhra Pradesh.
Earlier, in May, the company bagged two railway infrastructure contracts worth nearly ₹1,002 crore from NMDC. and West Central Railway.
Despite a string of order wins, the stock has remained under selling pressure as weak earnings in recent quarters have kept investor sentiment subdued.
Shares crash over 38% in less than seven months
As the stock remained under sustained selling pressure, its year-to-date losses widened to 38%, marking its biggest annual decline since listing in 2019. This comes after the stock ended 2025 with a decline of 15.5%.
The stock has witnessed a one-way fall since touching its all-time high of ₹647 in June 2024 and has so far plunged 66%, eroding most of its earlier gains.
However, on a long-term basis, the stock still trades with strong gains, having surged nearly 635% over the last five years.
Despite the weak performance on the exchange, retail investors continued to remain bullish on the company’s growth prospects, collectively holding a 15.9% stake at the end of the March quarter, according to Trendlyne data.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
