Rs 83,221 Crore Order Book: Multibagger Railway Infrastructure Company Bags New Order Worth Rs 283,69,90,691.21 From East Coast Railway
The stock gave multibagger returns of 200 per cent in just 1 year and a whopping 1,750 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) bagged a new order worth Rs 283,69,90,691.21 from East Coast Railway. The contract is for “3rd & 4th line between Jarapada & Talcher Road and Construction of New line between Angul- Balram (MCRL Inner Corridor Phase-I Doubling 14 Kms).: Execution of balance earthwork in formation, minor bridges, major bridges, P. way linking works, supply of ballast, S&T Buildings, Level Crossing and other Misc. works between Jarapada and Talcher Road excluding station yards in connection with 3rd& 4th line of Jarapada-Budhapank Project and between Angul & Balram including yards of MCRL Inner Corridor Phase-I Doubling. The order will be completed within 24 months from the LOI.
Earlier, RVNL took a significant step towards global expansion by incorporating a wholly-owned subsidiary, "COMPANY RAIL VIKAS NIGAM LTD (ONE PARTNER)", in Saudi Arabia. The company's registration was officially confirmed on October 21, 2024. In addition to this international venture, RVNL has secured a substantial domestic contract from East Coast Railway for the construction of additional railway lines in the eastern region, valued at Rs 283,69,90,691.21. The project encompasses various critical components such as earthwork, bridge construction, track laying, and other essential works. Moreover, RVNL has been awarded a contract to electrify the Garwa Road-Mahadiya section of the East Central Railway, enhancing freight transportation efficiency. To further solidify its position in the global infrastructure market, RVNL has entered into a Memorandum of Understanding with Engineers India Limited (EIL), aiming to collaborate on joint projects, share market insights, and develop business proposals together.
About the Company
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 21 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33.4 per cent. As of June 30, 2024, RVNL has a strong order book of Rs 83,221 crores, focusing on railway, metro and overseas projects.
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According to Quarterly Results, the net sales decreased by 27 per cent to Rs 4,073.80 crore and net profit decreased by 34 per cent to Rs 222.56 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 8 per cent to Rs 21,889.23 crore and net sales increased by 16.5 per cent to Rs 1,469.53 crore in FY24 compared to FY23. The company has a market cap of over Rs 95,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.
In September 2024, FIIs increased their stake to 5.05 per cent and DIIs decreased their stake to 6.33 per cent compared to June 2024. As of September 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.96 per cent stake. The stock gave multibagger returns of 200 per cent in just 1 year and a whopping 1,750 per cent in 5 years. Investors should keep an eye on this railway infra stock.
Disclaimer: The article is for informational purposes only and not investment advice.