400 per cent returns: This multibagger railway wagons company bags a new order worth Rs 1097,68,43,890 from Himachal Pradesh State Electricity Board Ltd!

The stock gave multibagger returns of 400 per cent in just 1 year and over 800 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) informed that the company emerges as the Lowest Bidder (L1) for an order worth Rs 1097,68,43,890 (including tax) from Himachal Pradesh State Electricity Board Limited. The order includes the development of distribution infrastructure at the SOUTH ZONE of Himachal Pradesh under the revamped reforms-based and results-linked, distribution sector scheme [loss reduction works]. The order will be completed within 24 months from the LOI.

Earlier, the company emerged as the lowest bidder (L1) from Central Railway for the construction of 4 nos. tunnels with ballache stainless track, earthwork in formation, construction of important bridges (2nos), major bridges (1no), minor bridges (25nos), supply of stone ballast, track linking, side drain retaining wall etc in Dharakoh Maramjhiri section in connection with the third line. The order is worth Rs 311,17,66,200 and will be completed in 18 months from LOI.

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 1.89 per cent to Rs 169.40 per share from its previous closing of Rs 166.25.

The shares of the company have a PE of 19.7x, an ROE of 22 per cent and an ROCE of 19 per cent. The stock gave multibagger returns of 400 per cent in just 1 year and over 800 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.