Rs 65,000 crore order book: This multibagger railway infrastructure company emerges as the lower bidder for orders worth Rs 303,84,68,370

The stock gave multibagger returns of 255 per cent in just 1 year and a whopping 815 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) informed that the company has emerged as the lower bidder (L1) for 3 orders worth approx. Rs 303,84,68,370. Here are the details:

Lowest Bidder 1: RVNL emerges as the lowest bidder (L1) from South Eastern Railway for design, supply, erection, testing and commissioning for upgradation of electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Kharagpur (Excl.) Bhadrak (Excl.) section of Kharagpur division of South Eastern Railway to meet 3000 MT loading target. The order is worth Rs 148,26,89,067 and will be completed in 18 months.

Lowest Bidder 2: RVNL emerges as the lowest bidder (L1) from N.F.Railway Construction for engineering, procurement, construction of design, supply, erection, testing & commissioning of 25 kV, 50 Hz, Single Phase, AC, Electrification OHE and TSS Work of Araria - Thakurganj New line Section in connection with new line project of Araria - Galgalia of N.F. Railway, including associated works and supply, erection, modification, testing and commissioning of SCADA for the section in EPC mode. The order is worth Rs 95,95,44,545 and will be completed in 240 days.

Lowest Bidder 3: RVNL informed that joint venture with Salasar Techno Engineering Ltd and emerged as the lowest bidder (L1) from Energy Development Corporation Limited (EDCL) for “plant design, supply and installation of 45.8 km, ll0Kv Double Circuit Rukarara-Huye-Gisagara Transmission Line. The order is worth USD 7,152,236.59 or Rs 59,62,34,758 and will be completed in 18 months.

Today, shares of Rail Vikas Nigam Ltd (RVNL) gained 1.30 per cent to Rs 265.20 per share from its previous closing of Rs 261.80 with an intraday high of Rs 265.80 and an intraday low of Rs 258.50. The stock’s 52-week high is Rs 345.60 and its 52-week low is Rs 63.70.  

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 55,000 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 255 per cent in just 1 year and a whopping 815 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.