800 per cent returns This multibagger railway wagons company bags new orders worth Rs 651,09,72,596 from Maharashtra Metro Rail Corporation Ltd!

The stock gave multibagger returns of 350 per cent in just 1 year and over 800 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) informed that the company bagged multiple orders worth Rs 651,09,72,596 from Maharashtra Metro Rail Corporation Ltd (MMRCL). Here are the details:

Order No – 1: The company has received a letter of acceptance (LOA) from MMRCL for the design and construction of the elevated metro viaduct. The project is worth Rs 394,89,84,782 and will be completed in 30 months from LOA.

Order No – 2: The company has received another LOA for multiple projects worth Rs 256,19,87,814 from MMRCL. The orders include 6 elevated metro stations viz. Pili Nadi to Lekha Nagar; 1 elevated and 1 at-grade station viz. Ecopark and Metro City; 1-grade section formation earthwork, boundary wall and retaining wall; elevated metro track supporting structure for Eco Park Metro station and multi-storied building at Tulsi School Land. The orders will be completed within 30 days from LOA.

Earlier, the company emerged as the Lowest Bidder (L1) for an order worth Rs 444,26,24,392 (including tax) from Himachal Pradesh State Electricity Board Limited. The order includes the development of distribution infrastructure at the NORTH ZONE of Himachal Pradesh under the revamped reforms-based and results-linked, distribution sector scheme [loss reduction works]. The order will be completed within 24 months from the LOI.

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 32.20 per cent. The company declared a final dividend of Rs 0.36 per share for FY 2022-23, which had a record date of September 20, 2023.

On Wednesday, shares of RVNL plunged 0.67 per cent to Rs 171.20 per share from its previous closing of Rs 172.35 with an intraday high of Rs 174.65 and an intraday low of Rs 168.40.

The shares of the company have a PE of 22.9x, a ROE of 21.4 per cent and an ROCE of 18 per cent. The stock gave multibagger returns of 350 per cent in just 1 year and over 800 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.