Rs 85,000 crore order book: President of India-backed multibagger railway infra stock emerges at lowest bidder (L1) for an order worth Rs 187,34,07,261 from MMRCL

The stock gave multibagger returns of 230 per cent in just 1 year and a whopping 1,175 per cent in 3 years.

On Monday, shares of Rail Vikas Nigam Ltd (RVNL) gained 7.92 per cent to an intraday high of Rs 399.70 per share from its previous closing of Rs 370.35. The stock also made a fresh news 52-week high of Rs 399.70 while its 52-week low is Rs 110.50. The company's shares saw a spurt in volume by 1.20 times on BSE and in the recent trading sessions, the stock has been hitting back-to-back 52-week highs.

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 March 31, 2023, RVNL has a strong order book of over Rs 85,000 crores, focusing on railway, metro, and overseas projects.

Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from Maharashtra Metro Rail Corporation Limited (Nagpur Metro) for the construction of 6 nos elevated metro stations (Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club and Kanhan River Metro Station) in Reach 2B of NMRP Phase 2. The order is worth Rs 187,34,07,261 and should be completed in 30 months.

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According to Quarterly Results, the net sales increased by 17.4 per cent to Rs 6,714.01 crore and net sales increased by 27.5 per cent to Rs 435.34 crore in Q4FY24 compared to Q4FY23. 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 Board recommended a final dividend of Rs 2.11 per share (i.e. 21.10 per cent) on the paid-up equity share capital for the financial year 2023-24.

Earlier, RVNL received a Letter of Acceptance (LoI) from SER HQ Electrical/South Eastern Railway for the design, supply, erection, testing and commissioning for the upgradation of an electric traction system for Kharagpur (Excl.)- Bhadrak (Excl.) section of Kharagpur division of South Eastern Railway to meet 3000 MT loading target. Tender No: SER-OHE-KGP-BHC-2x25KV. The order is worth Rs 148,26,89,066.54 and will be completed within 18 months.

In March 2024, the President of India’s portfolio sold 11,17,57,277 shares and decreased their stake to 72.84 per cent compared to 78.20 per cent in March 2023. The company has a market cap of over Rs 78,000 crore and the shares of the company have an ROE of 20.4 per cent and an ROCE of 18.7 per cent. The stock gave multibagger returns of 230 per cent in just 1 year and a whopping 1,175 per cent in 3 years. Investors should keep an eye on this railway infra stock.

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