Rs 65,000 crore order book: This multibagger railway infrastructure company bags new order worth Rs 95,95,44,544.95 from Ministry of Railways

The stock gave multibagger returns of 240 per cent in just 1 year and a whopping 800 per cent in 3 years.

Rail Vikas Nigam Limited (RVNL) was awarded a contract by NFR-CONST HQ-ELECTRICAL/N.F.RLY CONSTRUCTION, a part of the Ministry of Railway for the electrification of a new railway line section in India. The project involves the design, procurement, construction, supply, erection, testing and commissioning of a 25 kV, 50 Hz, single-phase AC electrification system for the Araria-Thakurganj new line section, which is part of the larger Araria-Galgalia new line project under North East Frontier Railway. The contract, valued at approximately Rs 95,95,44,544.95, is to be completed within 240 days in EPC mode (Engineering, Procurement and Construction). This indicates that RVNL will be responsible for the entire project lifecycle, from design and procurement to construction and commissioning.

Earlier, the company was awarded a prestigious contract worth USD 71,52,000 equivalent to Rs 59,62,10,000 (appx.) by Energy Development Corporation Limited for the Rwanda transmission system reinforcement and last mile connectivity project (TSRLMC) for the plant design, supply & installation of 45.8 Km, 110 KV double circuit Rukarara-Huye-Gisagara transmission lines. The order is bagged in JV partnership with Salasar Techno Engineering Ltd from an international client and will be completed in 18 months.

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Today, shares of Rail Vikas Nigam Ltd (RVNL) plunged 3.19 per cent to Rs 251.70 per share from its previous closing of Rs 260 with an intraday high of Rs 256.15 and an intraday low of Rs 220. The stock’s 52-week high is Rs 345.60 and its 52-week low is Rs 73.53.   

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 December 31, 2023, RVNL has a strong order book of over Rs 65,000 crores, focusing on railway, metro, and overseas projects.

The company has a market cap of over Rs 52,000 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 240 per cent in just 1 year and a whopping 800 per cent in 3 years. Investors should keep an eye on this railway infrastructure stock.

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