Rs 83,221 Crore Order Book: Railway Infrastructure Company emerges as the Lowest Bidder (L1) for an order worth Rs 625,08,34,774.95from South Central Railway
The stock gave multibagger returns of 190 per cent in just 1 year and a whopping 1,800 per cent in 5 years.
Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from South Central Railway for engineering, procurement and construction (EPC) contract agreement for doubling of track between Parbhani to Parli stations (58.06Kms) (excluding Gangakhed yard from km 292.075 to km 298.85 =6.775 Km) including Electrification & Signaling works in connection with Parbhani -Parli doubling project of South Central Railway in the state of Maharashtra. This domestic contract, valued at Rs 625,08,34,774.95 and is expected to be completed within 30 months.
Earlier, RVNL secured a significant contract worth Rs 283,69,90,691.21 from East Coast Railway. This contract involves the construction of additional railway lines and associated infrastructure between Jarapada and Talcher Road, and between Angul and Balram. The scope of work includes earthworks, bridge construction, track laying, and other miscellaneous works. This project is expected to be completed within a 24-month timeframe. Additionally, RVNL has formed a strategic partnership with Engineers India Limited (EIL) through a Memorandum of Understanding. This collaboration aims to leverage the strengths of both organizations to pursue joint ventures, share market knowledge, and develop innovative business solutions.
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 over Rs 93,000 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 190 per cent in just 1 year and a whopping 1,800 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.