RVNL Shares Climb Fourth Day as Fare Hike Boosts Railway Revenue

RVNL’s stock has gone up for the fourth day in a row, reaching its best price since early October.

What sparked the rally?

The government announced a small increase in passenger fares to help cover rising costs. The change adds just a few paise per kilometre, but it is expected to bring about ₹600 crore extra revenue before the fiscal year ends.

Details of the new fare structure

• Ordinary class for trips over 215 km: +1 paise per km
• Mail & Express non‑AC and all AC classes: +2 paise per km

Other factors supporting the stock

RVNL also secured a contract from the Northeastern Railway to build a major bridge substructure over the River Gandak, which adds to its order book.

Recent performance snapshot

• Current price: around ₹349, up 14% over four days.
• Shares have fallen about 46% from the July 2024 high of ₹647.
• Year‑to‑date the stock is down roughly 18%.
• Over the past two years it’s up about 450%, and 1,400% over five years.

What this means for investors

The fare hike improves the railway’s finances, which could boost RVNL’s future earnings. Combined with new project wins, the stock may have upside, but it’s still volatile after a steep decline from its peak.

Remember, this is perspective, not a prediction. Do your own research or consult a qualified advisor before making any investment decisions.