Rs 83,221 crore order book: Railway infrastructure company emerges as the lowest bidder (L1) for order worth Rs 404,40,32,985 from East Coast Railway
The stock gave multibagger returns of 140 per cent in just 1 year and a whopping 1,800 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) has emerged as the Lowest Bidder (L1) from East Coast Railway for the "Koraput-Singapur Road Doubling Project: Execution of 27 Nos of Major Bridges i.e. (22 Nos of Major Bridges & 5 Nos of ROBs) and earthwork in formation of approaches, protection works and other connected miscellaneous works between Tikiri and Bhalumaska stations in connection with Koraput-Singapur Road Doubling Project of Waltair Divison, East Coast Railway." This domestic order awarded by East Coast Railway encompasses the construction of various bridges and associated works. The project, valued at Rs 404,40,32,985, is expected to be completed within 30 months, with the scope of work governed by General Contract Conditions.
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 140 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.