Rs 65,000 crore order book: This multibagger railway infrastructure company signs MoU worth Rs 229.43 crore with Airports Authority of India

The stock gave multibagger returns of 300 per cent in just 1 year and a whopping 800 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) signed a memorandum of understanding with the Airports Authority of India (AAI) to build a subway or underpass in Kolkata. This underground passage will connect the AAI's operational area to their residential colony, for an estimated cost of Rs 229.43 crore (including GST).

Earlier, Rail Vikas Nigam Limited was awarded a contract worth Rs 167,28,12,874.95 to upgrade the electric traction system on the Rajkharsawan-Nayagarh-Bolani section of South Eastern Railway's Chakradharpur division. The project, which involves designing, supplying, installing, testing and commissioning the new system, will increase the traction power from 25 KV to 50 KV and is expected to be completed within 18 months.

Furthermore, the company emerges as the lowest bidder (L1) from Madhya Pradesh Power Transmission Company Limited (MPPTCL) for the construction of 132kV and 220kV transmission lines and associated feeder bays on a total turnkey basis in Eastern MP. The order is in a JV partnership wherein RVNL's share is 51 per cent and Salasar Techno Engineering Ltd.’s share is 49 per cent. The order is worth Rs 173,99,04,310 and will be completed within 18 months.

Today, shares of Rail Vikas Nigam Ltd (RVNL) gained 4.28 per cent to Rs 260.50 per share from its previous closing of Rs 249.80 with an intraday high of Rs 267.80 and an intraday low of Rs 252.60. The stock’s 52-week high is Rs 345.60 and its 52-week low is Rs 63.70.  

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 December 31, 2023, RVNL has a strong order book of over Rs 65,000 crores, focusing on railway, metro, and overseas projects.

The company has a market cap of Rs 54,315 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 18 per cent. The stock gave multibagger returns of 300 per cent in just 1 year and a whopping 800 per cent in 3 years. Investors should keep an eye on this railway infrastructure stock.

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

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