Rs 83,221 Crore Order Book: Railway Infrastructure Company Receives Order Worth Rs 180,00,96,810.08 From East Central Railway
The stock gave multibagger returns of 210 per cent in just 1 year and a whopping 1,950 per cent in 5 years.
Rail Vikas Nigam Limited has received Letter of Acceptance from East Central Railway for the design, supply, erection, testing and commissioning of 2x25KV feeder line along the track with 25KV OHE modification works to meet 3000 MT loading target for UP & DN line of Garwa Road -Mahadiya Section of Dhanbad Division under E.C. Railway. The order is worth Rs 180,00,96,810.08 and will be completed within 18 months for LOA.
Earlier, Rail Vikas Nigam Limited - HFCL Limited – Aerial Telecom Solutions Pvt Ltd. Consortium emerged as the Lowest Bidder (L1) twice from Bharat Sanchar Nigam Limited (BSNL) for the development, upgradation, operation, and maintenance of the middle mile network of Bharat Net on a Design Build Operate and Maintain (DBOM) model. The first order, valued at Rs 1917,39,85,691.88, and the second order, worth Rs 5008,20,35,544.26, are to be executed over a period of three years for construction and ten years for maintenance. The maintenance contract will be charged at 5.5% per annum of capex for the first 1.5 years and 6.5% per annum of capex for the subsequent five years.
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 1,00,000 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 210 per cent in just 1 year and a whopping 1,950 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.