Rs 83,221 Crore Order Book: President of India-Backed Railway Infrastructure Company Formed A Wholly Owned Subsidiary Company In Kingdom Of Saudi Arabia
The stock gave multibagger returns of 180 per cent in just 1 year and a whopping 1,870 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) incorporated a wholly owned subsidiary company “COMPANY RAIL VIKAS NIGAM LTD (ONE PARTNER)” in Saudi Arabia on October 18, 2024. The Certificate of Registration of the Company was received on October 21, 2024.
Earlier, East Coast Railway awarded Rail Vikas Nigam Limited (RVNL) a substantial contract for the construction of additional railway lines in the eastern region. The project, valued at Rs 283,69,90,691.21, includes earthwork, bridge construction, track laying, and other essential works. RVNL, a domestic entity, has also secured a contract to electrify the Garwa Road-Mahadiya section of the East Central Railway, boosting freight transportation efficiency. To further expand its global reach, RVNL has partnered with Engineers India Limited (EIL) through a Memorandum of Understanding. This strategic alliance aims to identify joint projects, share market information, and develop business proposals together, positioning RVNL to capitalize on international infrastructure opportunities.
About the Company
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 21 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33.4 per cent. As of June 30, 2024, RVNL has a strong order book of Rs 83,221 crores, focusing on railway, metro and overseas projects.
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According to Quarterly Results, the net sales decreased by 27 per cent to Rs 4,073.80 crore and net profit decreased by 34 per cent to Rs 222.56 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 8 per cent to Rs 21,889.23 crore and net sales increased by 16.5 per cent to Rs 1,469.53 crore in FY24 compared to FY23. The company has a market cap of Rs 1,26,863 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.
In September 2024, FIIs increased their stake to 5.05 per cent and DIIs decreased their stake to 6.33 per cent compared to June 2024. As of September 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.96 per cent stake. The stock gave multibagger returns of 180 per cent in just 1 year and a whopping 1,870 per cent in 5 years. Investors should keep an eye on this railway infra stock.
Disclaimer: The article is for informational purposes only and not investment advice.