Multibagger Railway Stock Signs MoU with Abhinava Strategic Partners to Expand in Saudi Arabia and Middle East; Stock Surges 924 per cent in Three Years

Over the past year, the stock has delivered a return of 40.97 per cent, while over a three-year period, it has achieved a remarkable 924.43 per cent return, classifying it as a multibagger stock

Rail Vikas Nigam Limited has entered into a strategic Memorandum of Understanding (MoU) with Abhinava Strategic Partners Pvt Ltd (ASP). The collaboration aims to provide RVNL with advisory services for various projects across sectors such as Railways, MRTS, Tunnels, Roads, Bridges, Airports, Ports, and more. The focus will be on seizing opportunities in the Saudi Arabia and Middle East regions. This partnership aligns with RVNL's strategy to expand its footprint and expertise in international markets, particularly in infrastructure development.

Rail Vikas Nigam Ltd 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.

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Rail Vikas Nigam Limited is a prominent player in the infrastructure sector, with a current stock price of Rs 335.5. The company boasts a market capitalisation of Rs 71,213.86 crores. Over the past year, RVNL's stock has delivered a return of 40.97 per cent, while over a three-year period, it has achieved a remarkable 924.43 per cent return, classifying it as a multibagger stock. The stock's 52-week high stands at Rs 647, with a low of Rs 213. RVNL continues to be a significant entity in the infrastructure domain, leveraging strategic partnerships to enhance its project portfolio. The company has been maintaining a healthy dividend payout of 33.4 per cent.

In the Quarterly Results of Dec-24, revenue stood at Rs 4,590.75 crore, declining 1.82 per cent YoY and 5.72 per cent QoQ from Rs 4,675.85 crore in Dec-23 and Rs 4,869.22 crore in Sep-24. Net profit for Dec-24 was Rs 294.99 crore, down 9.51 per cent YoY and 2.49 per cent QoQ compared to Rs 325.98 crore in Dec-23 and Rs 302.51 crore in Sep-24. The net profit margin for Dec-24 was 6.43 per cent, compared to 6.97 per cent in Dec-23 and 6.21 per cent in Sep-24.

For the full year FY24, revenue was Rs 21,732.58 crore, registering a growth of 7.15 per cent from Rs 20,281.57 crore in FY23. Net profit for FY24 stood at Rs 1,248.62 crore, compared to Rs 280.40 crore in FY23, showing a growth of 6.20 per cent. The net profit margin for FY24 was 1.29 per cent, compared to 1.30 per cent in FY23.

As of December 2024, the shareholding pattern is as follows: Promoters hold 72.84 per cent, Foreign Institutional Investors (FIIs) hold 5.10 per cent, Domestic Institutional Investors (DIIs) hold 6.16 per cent, the Government holds 0.01 per cent, and the Public holds 15.89 per cent. Compared to the previous quarter (September 2024), there is no significant change in shareholding.

With a PE ratio of 54.7x, the company trades at a premium compared to the industry PE of 18.5x. The company has ROCE of 18.7 per cent and ROE of 20.4 per cent.  

Investors must keep this Large-Cap stock on their radar.

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