On Wednesday, February 5, after receiving a letter of acceptance (LoA) from East Coast Railway for a Rs 404.4 crore contract under the Koraput-Singapur Road Doubling Project, shares of Rail Vikas Nigam Ltd (RVNL) jumped 4% to reach a day’s high of Rs 416.35 on the BSE.
The LoA relates to the “Koraput-Singapur Road Doubling Project,” which entails building 27 significant bridges, earthwork for track formation, protection works, and other various tasks between Tikiri and Bhalumaska stations in Odisha, according to a post-market filing made by RVNL on February 4. RVNL has thirty months to finish the project.
RVNL has previously announced that it had won the project as the lowest bidder on December 31, 2024. Recently, there has been a great deal of volatility in RVNL shares. The stock and other railway stocks soared to a one-year high of Rs 501 before Finance Minister Nirmala Sitharaman presented the Union Budget 2025–2026 on February 1. The stock, however, dropped following the budget speech, which left the FY26 capital spending for Indian Railways at Rs 2.52 lakh crore and featured no significant reforms for the industry. Since their peak on February 1, RVNL’s shares have dropped by over 18%.
The company further said that the board of directors of RVNL will also convene on February 12 to approve the business’s statements for the quarter and nine months ending December 31, 2024. The stock will continue to be closely watched before and after announcing the Q3 results.
RVNL Shares Target Price
Based on Trendline data, the average target price for RVNL shares is Rs 357, indicating an 11% decline from the present price. Two experts have unanimously recommended a “provide.”
The Sensex increased 1.8% on Tuesday, February 4, while RVNL shares ended the day at Rs 400.2, down 1.73% on the BSE. RVNL’s stock has risen 453% in the last two years but down 32% in the previous six months. The market value of the firm is Rs 83,442 crore.
