RVNL shares climb almost 8% on ₹729 crore order win from HPSEBL

Shares of Rail Vikas Nigam Ltd (RVNL) climbed almost 8 percent in early trade on Wednesday, March 5, after securing a significant order from Himachal Pradesh State Electricity Board Ltd (HPSEBL).

RVNL received a Letter of Acceptance (LoA) for the development of distribution infrastructure in the Central Zone of Himachal Pradesh under the Revamped Reforms-Based and Results-Linked Distribution Sector Scheme. The project, aimed at loss reduction, is valued at ₹729 crore.

"It is hereby informed that Rail Vikas Nigam Limited has received Letter of Acceptance from HPSEBL for “Development of Distribution Infrastructure at CENTRAL ZONE of Himachal Pradesh under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme (Loss Reduction Work),” it said in a press release.

The contract entails the development of distribution infrastructure in the Central Zone of Himachal Pradesh under the Revamped Reforms-Based and Results-Linked Distribution Sector Scheme (RDSS). This project falls under loss reduction works, a key initiative aimed at improving power distribution efficiency and minimizing transmission losses.

According to the official disclosure, the order is valued at ₹729.82 crore, inclusive of applicable taxes, and has an execution timeline of 24 months. The awarding entity, HPSEBL, is a domestic firm, and there is no involvement of any related parties or promoter group in the transaction. The project is expected to enhance the state's electricity distribution network, supporting India's broader power sector reforms.

Following the announcement, RVNL’s stock gained traction as investors reacted positively to the contract win. Market participants view the development as a testament to the company’s ability to secure and execute large-scale infrastructure projects, diversifying its portfolio beyond railway operations.

Stock Price Trend

The stock rose as much as 7.7 percent to its day's high of ₹351.55.

The PSU stock has now lost over 45 percent investor wealth from its peak of ₹647.00, hit in July 2024. Meanwhile, it has advanced over 65 percent from its 52-week low of ₹213.00m recorded in March 2024.

In the last 1 year, the stock has added over 35 percent. Moreover, in February, it tumbled over 30 percent after an almost 13 percent rise in January.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.