Rs 70,000 crore order book and 600 per cent returns: This multibagger railway wagons company emerges as L1 bidder for an order worth Rs 123,36,58,387 from Southern Railway!
The stock gave multibagger returns of 140 per cent in just 1 year and a whopping 600 per cent in 3 years.
Rail Vikas Nigam Ltd (RVNL) informed that the company and Karnataka Road Development Corporation (KRDCL) formed a joint venture and emerged as the Lowest Bidder (L1) 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.
Earlier, RVNL and URC Construction (URC) teamed up to win a prestigious contract for a new metro rail project in Madhya Pradesh. Their joint venture, RVNL-URC JV, was the lowest bidder for a project valued at Rs 543 crore, which involves designing and building an elevated viaduct, five metro stations, and a ramp. This crucial infrastructure development, to be completed within three years, promises to enhance public transportation within Indore. Both companies will contribute their expertise to the project, with RVNL holding a majority stake of 51 per cent and URC 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 plunged 6.20 per cent to Rs 172.40 per share from its previous closing of Rs 183.80 with an intraday high of Rs 187.50 and an intraday low of Rs 170. 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 140 per cent in just 1 year and a whopping 600 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.
DSIJ’s ' Upstream Pick’ service recommends well researched contrarian stocks with high potential and high reward. If this interests you, do download the service details here.