300 per cent returns: This multibagger railways wagon company's subsidiary signs share purchase agreement with prominent entities!

The stock gave multibagger returns of 300 per cent in just 1 year whereas BSE Sensex Index is up by 22.40 per cent.    

RVNL has informed about the formation of a wholly-owned Subsidiary Company, viz, Kinet Railway Solutions Limited by Rail Vikas Nigam Limited (100 per cent).

In terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015, it is hereby informed that Share Purchase Agreement has been signed between the Company (Kinet Railway Solutions Limited) and the following entities:

1. Rail Vikas Nigam Limited (25 per cent).

2. Joint Stock Company Metrowagonmash (70 per cent).

3. Joint Stock Company Locomotive Electronic Systems (5 per cent).

Earlier to the above update, the company received an order for rehabilitation and up gradation from 4 to 8 lanning of Chandikhole - Paradip Section of NH-53 in the State of Odisha on HAM mode-2nd Call. The cost of the order is Rs 808,48,28,700 (Rs 808.48 crore).

RVNL has a market cap of over Rs 25,000 crore with a PE of 17.60x and an ROE of 25 per cent. The stock has a 52-week high of Rs 144.50 and a 52-week low of Rs 30.45. The company has been maintaining a healthy dividend payout of 33 per cent with a dividend yield of 1.58 per cent.

On Tuesday, shares of Rail Vikas Nigam Ltd surged 0.38 per cent to Rs 120 per share with an intraday high of Rs 121.70 and an intraday low of Rs 119.15. The stock gave multibagger returns of 300 per cent in just 1 year whereas BSE Sensex Index is up by 22.40 per cent.    

The company reported positive numbers in its Quarterly Results (Q4FY23) and annual results (FY23). Investors should keep an eye on this railways wagon stock.

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