Rs 70,000 crore order book and 450 per cent returns: This multibagger railway wagons company signs MoU with REC Ltd – know more here!
The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 450 per cent in 3 years.
In a win-win move for infrastructure development, Rail Vikas Nigam Limited (RVNL) and REC Limited have joined forces through a Memorandum of Understanding (MoU). RVNL, armed with promising projects boasting assured or projected revenue streams, unlocks access to REC's financial prowess. REC, in turn, gains the opportunity to directly invest in these robust initiatives, enjoying pre-set conditions and guaranteed returns.
This strategic partnership empowers RVNL to secure funding for critical infrastructure projects, while REC bolsters its portfolio with secure, high-yielding investments. This collaboration, fuelled by RVNL's well-defined propositions and REC's financial expertise, holds immense potential to accelerate India's infrastructure growth with mutually beneficial outcomes.
Earlier, RVNL & Karnataka Road Development Corporation (KRDCL) formed a joint venture and bagged an order for Varkala Sivagiri Railway Station – major upgradation/redevelopment of Varkala Sivagiri Railway Station in Kerala. The order is bagged from Southern Railway which will be completed within 30 months from LOI and is worth Rs 123,36,58,386.82. Both companies will contribute their expertise to the project, with KRDCL holding a majority stake of 51 per cent and RVNL holding 49 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 September 30, 2023, RVNL has a strong order book of over Rs. 70,000 crores, focusing on railway, metro, and overseas projects.
Today, shares of RVNL made an intraday high of Rs 185.60 and an intraday low of Rs 181.65. The stock’s 52-week high is Rs 199.35 and its 52-week low is Rs 56.15. 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 150 per cent in just 1 year and a whopping 450 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.
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