Railway stock: RVNL shares to be in focus on Monday after ₹903 crore order from SJVN

Shares of Rail Vikas Nigam (RVNL) are expected to attract investor interest on Monday’s trade, September 7, after the company received a Letter of Award from SJVN Thermal Private Limited (STPL), a wholly owned subsidiary of SJVN, for the construction of a permanent siding along with an aerial track connection from the plant boundary to Chausa and Pawani Kamarpur at Buxar, Bihar.

The project is part of the 1,320 MW Buxar Thermal Power Project (BTPP) and will be executed over a period of 36 months, which is worth ₹903 crore. The order is domestic in nature and falls under RVNL’s normal course of business.

The company also clarified that there is no promoter or promoter-group interest in the entity awarding the contract and that the order does not fall under related-party transactions.

This was the second order win for the company, as RVNL on Thursday emerged as the lowest bidder (L1) from East Coast Railway for works related to the execution of the third railway line between Nergundi-Barang (22 km) and Khurda Road-Vizianagaram (363 km) on the Bhadrak-Vizianagaram section, covering a total stretch of 385 km.

The scope includes roadbed works, minor and major bridges, RUBs/LHS, building works, ballast supply, P-Way linking and other allied works, including utility shifting, signalling and telecommunication (S&T), electrification, power supply arrangements, and shifting/modification of HT and LT lines.

The project is a domestic order worth ₹404.88 crore, including GST, and is scheduled to be executed within 30 months.

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 40% in eight months

The shares extended their losing streak to a fourth straight month in August, falling another 7% to ₹210 apiece. As the stock remained under sustained selling pressure, its year-to-date losses widened to 40%, marking its biggest annual decline since listing in 2019. This came 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 68%, eroding most of its earlier gains.

However, on a long-term basis, the stock still trades with strong gains, having surged nearly 608% 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 an 18.2% stake at the end of the June quarter, according to Trendlyne data.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.