Rs 83,221 crore order book: Railway infrastructure company emerges as lowest bidder (L1) for an order worth Rs 642,56,57,822 from PSPCL
The stock gave multibagger returns of 164 per cent in just 1 year and a whopping 1,700 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) has been selected as the Lowest Bidder (L1) by Punjab State Power Corporation Limited (PSPCL) for a significant project. This project involves the development of distribution infrastructure work for Package-3 Central Zone, specifically targeting the reduction of HT/LT infrastructure losses under the reforms-based and results-linked revamped distribution sector scheme (RDSS) in Punjab. This domestic contract is valued at Rs 642,56,57,822/- and is expected to be executed within a 24-month timeframe.
Earlier, the company secured a significant contract from South Central Railway for the doubling of the track between Parbhani and Parli stations in Maharashtra. This EPC contract, valued at Rs 625,08,34,774.95 crore, encompasses track doubling, electrification, and signalling works. The project is expected to be completed within 30 months. This domestic contract aligns with RVNL's focus on infrastructure development and enhances connectivity in the region.
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 declined 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 over Rs 90,000 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 164 per cent in just 1 year and a whopping 1,700 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.