RVNL is an executing arm of Indian Railways, and its primary role is to work for and on behalf of the Ministry of Railways for the execution of railway projects assigned to it.
RVNL operates on a turnkey basis, which means it takes responsibility for the full project cycle, starting from the conceptualization stage to the commissioning stage. The company is involved in various aspects of project development, including:
- Conceptualization: RVNL plays a key role in developing the initial ideas and concepts for railway projects. It works with stakeholders to identify project requirements and objectives.
- Design: RVNL is responsible for the detailed design of the projects, ensuring that they meet the necessary safety, engineering, and environmental standards.
- Preparation of Estimates: The company prepares cost estimates for the projects, outlining the expected budget and resource requirements.
- Calling and Award of Contracts: RVNL handles the tendering process for the projects, inviting bids from contractors and vendors. It then awards contracts to selected bidders.
- Projects and Contract Management: RVNL oversees the execution of the projects and manages the contracts to ensure that the work is completed as per the agreed terms and within the specified timeline.
The scrip has an average target price of Rs 130, Trendlyne data showed, suggesting a potential upside of 7 per cent. It has a one-year beta of 0.72, indicating low volatility on the counter.
