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New Delhi: The shares of Rail Vikas Nigam Limited i.e. RVNL continued to jump in the fourth consecutive trading session on Wednesday, December 24. Investors were seen buying the Railway PSU stock as it hit an intraday high of Rs 349.40 apiece. This level is the highest since the beginning of October. In the last four sessions, RVNL's stock has seen an overall rise of about 14 percent.
After being under pressure for a long time, the shares of the railway sector have improved. The main reason for this is believed to be the change in passenger fares by the government. The government has announced a slight increase in fares to balance the rising operational costs, so that passengers are not burdened.
Under the new fare structure, the changes coming into effect from Friday will increase by one paise per kilometer for travel of more than 215 kilometers in the ordinary category and two paise per kilometer in the non-AC category of mail and express and all AC classes. With this move, Railways are expected to earn an additional income of about 600 million rupees in the rest of the current financial year. This is the decision to increase the rent for the second time in this financial year. Earlier, the fare was revised on 1 July 2025 as well.
RVNL's stock has also been supported by receiving recent orders. Last week, the company got a big project from the North Eastern Railway. This order is related to the construction of the substructure of important bridge number 50 on the Gandak river. It includes double D type well foundation for double line, which is based on 25 ton axle load standards.
Passenger services of Indian Railways are running at a loss at the moment. Fares are about 45 percent less than the cost and this loss is compensated by freight traffic. This change in fares is considered important in improving the financial condition of railways and improving the operating ratio. In the current financial year, the operating ratio of railways is estimated to be around 98.43 percent.
RVNL's stock reached an all-time high of Rs 647 in July 2024. After this, there was a long correction in the stock. However, RVNL's performance has been strong in the long term. In the last two years, the stock has climbed about 450 percent. It has seen an increase of about 1400 percent in the last five years. However, the stock is still operating 32 percent below its one-year high.
