RVNL Shares Near 52-Week Low; Signs JV With Texmaco Rail; Stock Down 45% In 1 Year; Is It Time To Buy?

Rail Vikas Nigam Limited (RVNL) announced yesterday that it has signed a Joint Venture Agreement with Texmaco Rail & Engineering Limited (TREL) to collaborate on railway and allied infrastructure projects. The joint venture company will be incorporated after the necessary board and statutory approvals as per the company's Exchange Filing.

RVNL + Texmaco Joint Venture Details

As per the agreement, RVNL will hold a 51% stake, while Texmaco Rail & Engineering will hold 49% in the new joint venture company. The JV is expected to utilise the strengths of both entities to become a bigger and better rail and infrastructure solutions provider.

According to the Exchange filing by RVNL, "the proposed joint venture will operate in multiple segments, including:

Rolling Stock Manufacturing: Freight waggons, passenger coaches, locomotives, metro coaches, trainsets, and specialised components.

EPC Projects: Engineering, procurement, and construction contracts in railways and allied infrastructure.

Bidding & Tenders: Participation in domestic and international competitive bidding for railway projects.

Workshops & Depots: Establishment and management of railway depots, sheds, and maintenance facilities.

Geographical Expansion: Primary focus on India with the flexibility to expand internationally depending on opportunities."

RVNL Share Price Movement and Target Price

RVNL share price today opened at Rs. 316, slightly higher than the previous close. However, the stock lost most of its early gains during afternoon trade. As of 2:00 pm, RVNL shares were trading at Rs. 310.55, down 0.69% intraday.
However, the stock has been under pressure on a broader timeframe, falling 4.46% in the past five days, 12.39% over the past month, 27.46% year-to-date, and 46.29% in the past year.

IDBI Capital in its August 12 report revised the rating on RVNL from Sell to Hold with a target price of Rs. 340. The broking stated that "RVNL's Q1FY26 results were weak, with revenue slipping 4% YoY and 39% QoQ to Rs. 39 bn, while PAT fell 40% YoY and over 70% QoQ to Rs. 1.3 bn. Margins were hit due to a weaker revenue mix, lower income from the Ministry of Railways, and one-off costs. EPS stood at Rs. 0.65 versus Rs. 1.07 last year. Despite a strong order book, the steep sequential fall in topline and earnings has kept market sentiment cautious."

Texmaco Rail & Engineering Share Price Movement

As of 2:00 pm, the Texmaco Rail & Engineering Ltd share price was trading at Rs. 136.57, down 1.30% intraday (Rs. 1.80). The stock has been under selling pressure in recent sessions, slipping 6.68% over the past five days and 8.00% in the past month. Texmaco Rail shares have fallen sharply, losing 45.72% in the past year.

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