RVNL shares in news: Two factors that may move the stock

RVNL share price: Shares of state-owned Rail Vikas Nigam Ltd (RVNL) are in focus today as the company announced a Letter of Award (LoA) from East Central Railway worth Rs 358.97 crore. The state-owned firm also announced that a record date for the purpose of final dividend for FY 2025-26 is August 18, 2026.

RVNL shares closed 1.23% lower at Rs 221.25 on Tuesday. Market cap of the firm stood at Rs 46,131 crore.

The multibagger railway stock is down 39% this year. This is the biggest loss for the RVNL investors till date, according to Bloomberg data.

Shareholders, who bought the stock on listing, are sitting on a gain of 1,084% in over seven years. However, the railway sector stock's decline this year has been led by poor Q4 earnings and profit-booking.

Meanwhile, the LoA pertains to construction of doubling work including earth work, blanketing, minor bridges, major bridges, station & other buildings, platform work, LC work and other miscellaneous works for 25T Indian Railway Standard Loading from Kundawa Chainpur (excl.) to Raxaul (excl.) (i.e. Ch.145.500 to 186.540) (total- 41.04 km) in connection with doubling of Sitamarhi-Raxaul section in Samastipur Division of East Central Railway.

The project is to be completed in 1095 days.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.