Low PE high ROE multibagger stock: This construction company receives project worth Rs 24,000 crore and declares a healthy dividend!
This PSU stock is up by 112.84 per cent in just 1 year whereas BSE Mid-cap Index is down by 1.55 per cent.
Rail Vikas Nigam Limited (RVNL) has informed the exchange that it has received a project from the Office of the Executive Director, Railway Store (RS) Railway Board, Government of India. The project includes the manufacturing cum maintenance of Vande Bharat trainsets including the up-gradation of the Government manufacturing units & trainset depots.
The total quantity is 200 trainsets and the cost per set is Rs 120 crore aggregating to a total of Rs 24,000 crore where M/s. Joint Stock Company Metrowagonmash’s share of the project is 70 per cent, M/s. Joint Stock Company Locomotive Electronic System’s share is 5 per cent and M/s Rail Vikas Nigam Limited’s share is 25 per cent, respectively.
The company also announced an Interim Dividend of Rs 1.77 per equity share of Rs 10 each (i.e., 17.7 per cent) for the financial year 2022-23. The company verified the record date as Thursday, April 6, 2023.
Rail Vikas Nigam Ltd was established in 2003 by the Government of India to implement various types of rail infrastructure projects such as doubling, gauge conversion, new lines, railway electrification, major bridges, workshops and so on.
RVNL has a market cap of Rs 14,304 crore, a PE of 10.80x and an ROE of 21.02 per cent. The company reported positive numbers in both Quarterly Results and annual results.
Today, shares of RVNL surged 2.28 per cent to Rs 68.60 per share from its previous closing of Rs 67.77 with an intraday high of Rs 69.60 and a low of Rs 67.34.
The stock is up by 112.84 per cent in just 1 year whereas BSE Mid-Cap Index is down by 1.55 per cent. Investors should keep an eye on this multibagger PSU stock.