1,700 per cent returns and Rs 85,000 crore order book: This multibagger railway stock emerges as a lowest bidder for order worth Rs 202,87,57,512!
Shares of the company have gained more than 180 per cent in the last six months.
Rail Vikas Nigam Limited (RVNL) has emerged victorious in a tender by South Eastern Railway (SER). This project involves the design, supply, erection, testing, and commissioning of critical power infrastructure for a railway section.
Specifically, RVNL will be responsible for delivering a 132 KV Traction Substation, sectioning posts (SPs), and sub-sectioning posts (SSPs) for the Kharagpur-Bhadrak section in Kharagpur division. This upgraded system will operate on a 2x25 KV system, aiming to meet the demands of handling 3000 metric tons (MT). The contract value is estimated at Rs. 202.88 crore.
This win comes alongside another positive development for RVNL. The company has signed a Memorandum of Understanding (MoU) with TATWEER Middle East and Africa. This collaboration aims to leverage RVNL's expertise in the railway sector for joint projects in the Middle East, North Africa (MENA), and European countries. The MoU also explores potential collaborations in smart city development, digital transformation, and professional engineering services. These developments position RVNL for continued growth in both domestic and international railway infrastructure projects.
Rail Vikas Nigam Limited was Incorporated in 2003 by the Govt. of India, it is engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered into with Ministry of Railway. Shares of Rail Vikas Nigam Limited have also delivered multibagger returns of about 1,700 per cent in a three-year holding period. DIIs increased their stake in the company in March 2024. The company has an order book of Rs 85,000.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.