320 per cent returns This railway company emerges as the lowest bidder (L1) for orders worth Rs 256,19,87,814 from Maharashtra Metro Rail Corporation Limited!

The stock gave multibagger returns of 320 per cent in just 1 year and over 550 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) informed that the company emerges as the Lowest Bidder (L1) for orders worth Rs 256,19,87,814 in the following projects of Maharashtra Metro Rail Corporation Limited: (The projects will be completed within 30 months from LOI)

A) Six elevated metro stations viz. Pili Nadi to Lekha Nagar in Reach-2A,

B) One elevated and one at-grade station viz. eco-park and metro city in Reach-IA respectively.

C) At-grade section formation earthwork, boundary wall and retaining wall between Ch. 19550 to Ch. 20421.016 & Ch. 20498.516 to Ch. 21296.917,

D) Elevated metro track supporting structure for the eco-park metro station between Ch. 20421.016 to Ch. 20498.516 and

E) Multi-storied building at Tulsi School land (at Sitabuldi) of NMRP Phase-2.

Rail Vikas Nigam Ltd, a Navratna company was established in 2003 by the Government of India for various rail infrastructure projects. The company has delivered good profit growth of 20.30 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 32.20 per cent. The company declared a final dividend of Rs 0.36 per share for FY 2022-23, with a record date of September 20, 2023.

On Friday, shares of RVNL surged 6.1 per cent to an intraday high of Rs 139 per share. At the closing bell, shares of the company were trading at Rs 138.25 per share, up 5.53 per share.  

The shares of the company have a PE of 19.7x, an ROE of 20.7 per cent and an ROCE of 17.8 per cent. The stock gave multibagger returns of 320 per cent in just 1 year and over 550 per cent in 3 years. Investors should keep an eye on this railway stock.

Disclaimer: The article is for informational purposes only and not investment advice.