RVNL Wins ₹554.47 Crore Bengaluru Rail Project—What You Need to Know!

“RVNL wins ₹554.47 crore contract for Bengaluru Suburban Rail Project, while shares see mixed performance amid recent profit dips. Discover more!”

rvnl shares in focus after winning rs 554 crore bengaluru suburban rail project contract

On Wednesday, February 19, RVNL shares caught attention after the company won a significant contract worth ₹554.47 crore from Rail Infrastructure Development Company (K-RIDE) for the Bengaluru Suburban Rail Project (BSRP). This contract involves building nine rail stations, with one being elevated and eight at ground level. The stations will be located at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, and Kaggadasapura.

The work will include constructing station buildings, foot-over bridges, and more. The project will take 24 months to complete and RVNL is teaming up with Rithwik Projects Private Ltd, holding a 51% stake in the project.

In Q3 of the financial year 2024, RVNL reported a dip in profit, earning ₹311.6 crore compared to ₹358.6 crore the previous year. Their revenue fell slightly to ₹4,567 crore, down from ₹4,689 crore. The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) also decreased by 3.9% to ₹239.4 crore.

Despite a tougher financial period, the average target price for RVNL shares is ₹357, which suggests a possible increase of 7% from current prices. Two analysts have recommended a ‘Sell’ for these shares.

On Tuesday, RVNL’s stock closed down by 2.8% at ₹333. Although it has dropped 42% over the last six months, it has gained an impressive 386% in the past two years. The company’s market value stands at ₹69,452 crore.

(Disclaimer: The opinions presented in this article are solely those of the authors and do not reflect the views of Thellv.news)

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