From Rs 32.8 to Rs 165.8 per share: Heavy buying witnessed in this multibagger railway infrastructure stock post major orders; turned Rs 1 lakh into Rs 5 lakh within just 1 year!

The company has delivered good profit growth of 20.3 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33 per cent.

On Friday, the benchmark indices ended the trading session in the green. The BSE Sensex Index was up by 333 points or 0.5 per cent at 66,599 and the NSE Nifty-50 Index was up by 93 points or 0.47 per cent at 19,820.

Along with the market in green, shares of this multibagger railway infrastructure jumped 7.8 per cent to make a new 52-week high of Rs 165.8 per share. At the closing bell, shares of the company were trading at Rs 162.8 per share, up 5.82 per cent with a spurt in volume by more than 2.35 times on BSE.

Before revealing the stock name, let's discuss the recent orders that the company has received. Here are the details:

August 30, 2023: The company announced that it has been selected as the lowest bidder (L1) for the 5 projects of the Maharashtra Metro Rail Corporation Limited. The L1 projects are worth Rs 256,19,87,814 and will be completed in 30 months from the letter of intent (LOI).

September 01, 2023: The company informed that it received an order worth Rs 2,82,11,91,634 from Madhya Gujarat Vij Company Limited (MGVCL) for a full turnkey contract. The project will be completed in 31 months from LOI. (This is order No – 1)

September 02, 2023: The company informed that it received an order worth Rs 3,22,08,79,834 from Madhya Gujarat Vij Company Limited (MGVCL) for a full turnkey contract. The project will be completed in 31 months from LOI. (This is order No – 2)

September 04, 2023: The company informed that it received an order worth Rs 174,27,33,880 in a joint venture with MPCC from Vadodara Division on Western Railway for civil engineering work. The project will be completed in 2 years from LOI.

About the company: The company was Incorporated in 2003 by the Government 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. 

According to the Quarterly Results, the net sales increased by 20 per cent to Rs 5,572 crore and net profit increased by 15.1 per cent to Rs 343 crore in Q1FY24 compared to Q1FY23. According to the annual results, the net sales increased by 4.6 per cent to Rs 20,282 crore and net profit increased by 28 per cent to Rs 1,421 crore in FY23 compared to FY22. Additionally, the company declared a final dividend of Rs 0.36 per share and the record date is September 20, 2023. The company has delivered good profit growth of 20.3 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33 per cent.

And now, the moment you've all been waiting for! The name of the multibagger railway infrastructure stock that is creating all this excitement is Rail Vikas Nigam Ltd (RVNL).

If an investor invested Rs 1 lakh in RVNL stock at Rs 32.8 per share 1 year ago, the investment would have grown to Rs 5.05 lakh as of the intraday high of Rs 165.8 per share on Friday. This represents a gain of approximately 405 per cent. The shares of the company have a PE of 23.2x, an ROE of 20.8 per cent and a ROCE of 17.8 per cent.

Did you have this stock in your portfolio 1 year ago or did you bring it later, and is it currently part of your portfolio? Do let us know in the comment session below

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