Rs 65,000 crore order book and 800 per cent returns: This multibagger railway wagons company bags new orders worth Rs 419,99,14,854 from Western Railways!

The stock gave multibagger returns of 355 per cent in just 1 year and a whopping 800 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) informed that the company bagged multiple orders worth Rs 419,99,14,854 from Western Railways. Here are the details:

Order No – 1: The company has received a letter of acceptance (LOA) from Western Railways for earthwork, blanketing, retaining walls, boundary walls, side drains, major and minor bridges, LHS/RUB, LCs, construction of station buildings, platforms, subways, staff quarters, passenger amenities, circulating areas, approach roads, offices, service buildings, watering, sanitation, protection works, etc. Additionally, the company will supply 50 mm machine crushed stone ballast and complete track works including linking of track works. The project is worth Rs 245, 71,80,973.69 and will be completed in 24 months from LOA.

Order No – 2: The company has received another LOA for multiple projects worth Rs 174,27,33,879.97 from Western Railways. The orders earthwork, blanketing, retaining walls, boundary walls, side drains, major and minor bridges, LHS/RUB, LCs, etc. Additionally, it includes the construction of station buildings, platforms, subways, staff quarters, passenger amenities, circulating areas, approach roads, offices, service buildings, watering and sanitation systems, protection works, etc. Furthermore, the company will supply 50 mm machine crushed stone ballast and complete track works, including linking of track works. The orders will be completed within 24 months from LOA.

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 June 2023, RVNL has a strong order book of over Rs 65,000 crore, focusing on railway, metro, and overseas projects.

On Monday, shares of RVNL plunged 1.34 per cent to Rs 166.05 per share from its previous closing of Rs 168.30 with an intraday high of Rs 169.25 and an intraday low of Rs 165.05.

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 355 per cent in just 1 year and a whopping 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.