President of India sold 11,17,57,277 shares of this multibagger railway infra company: Bagged 2 orders worth Rs 271,05,07,122 from Ministry of Railways

The stock gave multibagger returns of 420 per cent in just 1 year and a whopping 2,300 per cent in 5 years.

This multibagger railway company has been awarded two contracts by Central Railway, Ministry of Railways, to enhance the electrical infrastructure of the Nagpur division. The first contract, valued at Rs 138,45,86,991.62, involves modifying the overhead electric (OHE) system on the Amla-Nagpur section. The second contract, worth Rs 132,59,20,130.37, will see similar OHE modifications on the Wardha-Ballarshah section. Both projects aim to upgrade the existing 1x25 kV electric traction system to a 2x25 kV AT Feeding System to facilitate the transportation of heavier loads, specifically targeting a 3000 MT loading capacity. These infrastructure improvements are expected to be completed within a two-year timeframe.

The stock name is Rail Vikas Nigam Limited (RVNL).

Earlier, RVNL signed two Memorandums of Understanding (MoUs) to expand their reach and services. One MoU with IMS Consultancy Private Limited (IMS) allows RVNL to leverage IMS's expertise in technical and advisory services for various infrastructure projects in Nepal, including railways, tunnels, roads, bridges, and power sectors. The other MoU with TATWEER Middle East and Africa LLC (TATWEER) focuses on international collaboration. This partnership aims to utilize RVNL's railway expertise in the MENA region and Europe, while also exploring joint ventures in designing and executing railway projects. Furthermore, the MoU with TATWEER expands RVNL's service offerings to include smart city solutions, digital transformation, and professional engineering services.

In March 2024, the President of India’s portfolio sold 11,17,57,277 shares and decreased their stake to 72.84 per cent compared to 78.20 per cent in March 2023. On Friday, shares of Rail Vikas Nigam Ltd (RVNL)gained 2.38 per cent and made a fresh new 52-weel high of Rs 645 per share from its previous closing of Rs 630. At the closing bell, shares of the company were trading at Rs 626.55 per share, down 0.55 per cent.

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 33 per cent. As of March 31, 2023, RVNL has a strong order book of over Rs 85,000 crores, focusing on railway, metro, and overseas projects.

According to Quarterly Results, the net sales increased by 17.4 per cent to Rs 6,714.01 crore and net sales increased by 27.5 per cent to Rs 435.34 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 8 per cent to Rs 21,889.23 crore and net sales increased by 16.5 per cent to Rs 1,469.53 crore in FY24 compared to FY23. The Board recommended a final dividend of Rs 2.11 per share (i.e. 21.10 per cent) on the paid-up equity share capital for the financial year 2023-24.

The company has a market cap of Rs 1,30,637 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 18 per cent. The stock gave multibagger returns of 420 per cent in just 1 year and a whopping 2,300 per cent in 5 years. Investors should keep an eye on this railway infra stock.

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

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