Rs 70,000 crore order book and 680 per cent returns: This multibagger railway wagons company is exploring opportunities in solar power projects in India and abroad!

The stock gave multibagger returns of 200 per cent in just 1 year and a whopping 680 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) informed that the company has formed one JV viz., JGPL-RVNL EPC Private Limited. The company formed a joint venture with Jakson Green Private Limited (JGPL). The sharing ratio is that JGPL will own 51 per cent while RVNL owns 49 per cent. This joint is formed to explore opportunities in solar power projects in India and abroad.

Additionally, RVNL has incorporated a subsidiary company viz., RVNL INFRA SOUTH AFRICA in South Africa for railway projects.

Earlier, the company emerges as the L1 bidder for order worth Rs 251,05,48,956 from M.P. Madhya Kshetra Vidyut Vitaran Co Ltd. The order includes supply, Installation, testing and commissioning of 11 KV Line associated works such as 11 KV Line bifurcation, 11 KV line interconnection, 11 KV line conductor augmentation, LT AB cabling augmentation and conversion of LT bare conductor to AB cabling under revamped reforms-based and results-linked, distribution sector (Package-11) in Jabalpur (City), Jabalpur (O&M), Katni, Mandla, Dindori, Seoni, Chhindwara, Narsinghpur, Balaghat, Shahdol, Anuppur and Umariya Circles of MPPKVVCL, Jabalpur Company area.

Furthermore, RVNL & Karnataka Road Development Corporation (KRDCL) formed a joint venture and bagged an order for Varkala Sivagiri Railway Station – major upgradation/redevelopment of Varkala Sivagiri Railway Station in Kerala. The order is bagged from Southern Railway which will be completed within 30 months from LOI and is worth Rs 123,36,58,386.82. Both companies will contribute their expertise to the project, with KRDCL holding a majority stake of 51 per cent and RVNL holding 49 per cent.

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 September 30, 2023, RVNL has a strong order book of over Rs. 70,000 crores, focusing on railway, metro, and overseas projects.

Today, shares of RVNL surged 1.23 per cent to Rs 243.70 per share with an intraday high of Rs 251.40 and an intraday low of Rs 226.90. The stock also made a fresh new 52-week high of Rs 51.40 per share with a spurt in volume by more than 3.17 times on BSE. 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 200 per cent in just 1 year and a whopping 680 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.