IRFC Stock Jumps: Now about a month is left for the presentation of the Union Budget and even before the budget, Indian Railway Finance Corporation (IRFC) and Railway Vikas Nigam Limited (RVNL) A positive attitude is being seen among the investors regarding the shares. On the last trading day of the week, IRFC shares rose by about 7 percent to Rs 130.50 on BSE in early trade. Shares of Railway Vikas Nigam Limited are trading at 383.75 on BSE, up 11.01 percent at 10.30 am. This has become the most strongly performing PSU stock during the session. With this surge, it emerged as the most profitable stock in the railway PSU sector.

Expectations that the government will continue to give priority to capital expenditure (capex) in the railway sector have strengthened investor confidence in IRFC and RVNL. Due to long-term plans and strong policy support related to railways, the investment side of this stock seems to be getting strengthened once again.

The optimistic environment created regarding the budget is considered to be a major reason behind this rise in railway shares. After trading in a narrow range for a long time, IRFC shares are now rising on expectations of possible capex increase.

Why are railway stocks rising?

History has also witnessed that before the Union Budget, there is a rise in the shares related to railways, the main reason for which is the expectation of increasing expenditure on infrastructure by the government. Since IRFC is responsible for raising funds for railway expenditure, network expansion, rolling stock and major infrastructure projects, the company is likely to directly benefit from the increase in railway allocation in the budget.

An important reason for the improvement in market sentiment regarding IRFC is the increasing clarity regarding its funding profile. Compared to other infrastructure companies, where the risk of project delays is high, IRFC’s business model is considered relatively safe. Its income is based on long-term agreements with Indian Railways, which ensures stability in the company’s cash flows. This is why even in an uncertain market environment, investors are considering it as a defensive and reliable option.

Why is confidence in ISFC increasing?

Expectations of stability in interest rates and control of borrowing costs are also playing a big role in increasing investor confidence in IRFC. This has reduced the earlier concerns regarding margins and long-term profits to a great extent. In the year 2025, the performance of IRFC shares had been weak compared to the broader market and it had come under pressure due to profit-booking after the earlier rally, but due to this reason now its valuation seems to be at an attractive level to the investors.

IRFC is emerging as a suitable option for investors looking for PSU shares with stable returns, regular dividends and strong government support. The recent rise indicates that stake is being increased again from the perspective of long-term investment rather than short-term speculation.

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Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

Rvnl shares: Navratna Railway PSU Stock Rail Development Corporation Limited (RVNL) has received a big order of Rs 143.3 crore. The company said on Saturday that it has signed a compromise letter (LOA) for a new contract of Rs 143.3 crore with the South-Central Railway.

This project includes upgradation of electric traction system in Salem Division of Southern Railway. The company said in its stock exchange filing, Rail Development Corporation Limited has received LOA from Southern Railway for upgradation work of electric traction systems.

Capacity of Southern Railway will increase

Under this contract, RVNL is to be converted to Salem Junction – Podanur Junction and Irugur -Coimgur – Coimgur – Podanur Junction The existing 1×25 KV traction system is to be converted into a more advanced 2×25 KV system. With this upgrade, the capacity of Southern Railway will increase and 3,000 metric tonnes of freight can be met. RVNL said that the work of this project will be completed in 24 months and the cost of working is Rs 143.3 crore including tax.

RVNL shares

The company’s revenue in FY25 stood at Rs 20,000-22,000 crore despite a relatively low performance so far. On Friday, RVNL shares closed at Rs 391.2 per share on the National Stock Exchange (NSE). The high level of 52 weeks of the stock is Rs 647 and a low level of 52 weeks is Rs 295.25.

Preparations to move forward in nuclear energy space also

The company’s project portfolio includes construction of railway tracks, doubling of tracks, electrification, metro projects, major and cable-sight bridges and institutional infrastructure. Meanwhile, as a strategic move towards clean energy and stability, RVNL is also exploring the possibility of partnership in nuclear energy space. According to media reports, in June, the company spoke to form a small modular reactor (SMR) for its ongoing mega infrastructure projects, such as Rishikesh-Karnprayag railway line, with the company’s government-owned nuclear power company Rosatom.

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Multibagger railway stock rvnl: If you invest in the stock market, then you will also be looking for such multibagger shares, which give many times the returns in some time. Today we will tell you about one such railway stock, which has given about 1800 percent returns to its investors since Kovid.

Actually, we are talking about shares of RVNL (Rail Vikas Nigam Limited). If you have invested in it, then you might have been rich. Understand this that if someone had put only 10,000 in this stock in March 2020, then today its price would have been 3.19 lakhs.

RVNL share tremendous performance

5 years ago (March 2020): Rs 11.6 per share

Today (25 March 2025): Rs 370.40 per share

52-Veek Range: 220 to 647

Market Cap: Rs 77,364 crore

Time Period Wise

1 year in 1 year: +48 percent return

In 2 years: +415 percent return

In 3 years: +907 percent return

5 years in 5 years: +1841 percent return

Why is RVNL shares climbing?

Orders are being received continuously from Railways and NHAI.

The company’s order book is 97,000 crores (49,000 crore bidding works + 47,000 crore railway projects).

Investors have increased confidence in PSU stocks.

Is it still right to buy?

Experts believe that the government’s focus remains in the infrastructure sector, which can benefit RVNL further. However, the stock has dropped slightly in the last few months (52-Veek is currently at Rs 370 against Rs 647), so new investors should take an entry into this stock only after research.

Important things about RVNL

The company makes railway infrastructure projects. Such as- metro, tunnel, bridge.

The Government of India holds 78.2 percent stake in this company.

In 2024, the company gave dividend to its investors at Rs 1.73 per share.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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