PSU Stock in Focus After Receiving Multiple Orders Worth ₹2,634 Cr From NMDC in the Last 24 Hours

Synopsis: PSU stock is in focus upon securing ₹2,634.25 crore in domestic orders from NMDC, Chhattisgarh, for township and residential projects in Kirandul and Bacheli, with execution timelines of 16–34 months.

The shares of a Mid-Cap company, specializing in executing comprehensive railway infrastructure projects on a turnkey basis, are in focus upon bagging multiple orders worth Rs. 2,634.25 crore from the National Mineral Development Corporation in the past 24 hours.

With a market capitalization of Rs. 66,147.26 Crores on the Day’s Trade, the shares of Rail Vikas Nigam Ltd rose by 1.11 percent, reaching a high of Rs. 321.05 compared to its previous close of Rs. 317.50.

What Happened

Rail Vikas Nigam Ltd, engaged in executing comprehensive railway infrastructure projects on a turnkey basis, is focus upon securing multiple work orders from the National Mineral Development Corporation.

Rail Vikas Nigam Limited (RVNL) has received its first order from National Mineral Development Corporation (NMDC) for the development of a township in Kirandul, Chhattisgarh. The contract, awarded under standard terms, is a domestic project valued at Rs. 371.69 crore, with a 21-month execution timeline.

The second order from National Mineral Development Corporation (NMDC) Limited for the construction of residential towers and a shopping complex in Bacheli, Chhattisgarh. The domestic project, awarded under standard terms, is valued at Rs. 644.84 crore and is to be executed over a 34-month timeline.

The third order is for the construction of residential towers at Iron Ore Deposit-10/11A in Bacheli, Chhattisgarh. The domestic project, awarded under standard terms, is valued at Rs. 536.40 crore and is to be executed over a 34-month timeline.

Its fourth order for the construction of residential towers at Iron Ore Deposit-5 in Bacheli, Chhattisgarh. The domestic project, awarded under standard terms, is valued at Rs. 796.80 crore and is to be executed over a 34-month timeline.

Its fifth order and last order for the development of a Residential Tower in Kirandul, Chhattisgarh. The contract, valued at Rs. 284.52 crore, is to be executed over 16 months and falls within the normal course of business of the company

Financials & Others

The company’s revenue rose by 2.56 percent from Rs. 4,567 crores in December 2024 to Rs. 4,684 crores in December 2025. Meanwhile, Net profit rose from Rs. 312 crores to Rs. 324 crores in the same period.

The company demonstrates strong operational efficiency, with a ROCE of 14.7% and ROE of 14.0%, indicating effective utilization of capital and equity to generate profits. Its debt-to-equity ratio of 0.52 reflects a balanced approach to leverage, maintaining financial stability while supporting growth.

The firm has consistently rewarded shareholders with a healthy dividend payout of 29.8% and has shown impressive performance over the long term, with a median sales growth of 25.8% over the last 10 years, highlighting its strong market presence and growth potential.

Rail Vikas Nigam Ltd (RVNL) is a public sector undertaking under the Ministry of Railways that specializes in the development and implementation of railway infrastructure projects in India. Incorporated in 2003, it functions as the construction arm for the ministry and has been granted Navratna status, a high-level designation for public sector companies. 

RVNL executes a wide range of projects, including new lines, doubling and electrification of tracks, metro rail projects, and major bridges, and is responsible for raising financial resources for these projects. 

The organization manages the full lifecycle of railway projects, including new lines, track doubling, electrification, metro systems, and major bridges. It mobilizes extra-budgetary funds, can set up SPVs for specific projects, and hands over completed projects to zonal railways for operation and maintenance.

The company’s order book is exceptionally strong, totalling nearly Rs. 87,000 crores. This includes Rs. 40,000 crores from railway nomination projects and Rs. 47,000 crores from competitive bids. Recently, they have secured works of Rs. 1,528 crores of new works in the last 9 months and have emerged as the lowest bidder for the project value of Rs. 3,667 crores.

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