Rs 85,000 crore order book and FIIs & DIIs increase stake: Multibagger railway infra stock hit upper circuit today; Company bagged order of Rs 191.54 crore from Indian Railways
The stock gave multibagger returns of 402 per cent in just 1 year and a whopping 2,455 per cent in 5 years.
On Monday, shares of Rail Vikas Nigam Ltd (RVNL) hit a 10 per cent upper circuit to Rs 607.95 per share from its previous closing of Rs 552.70. The stock’s 52-week high is Rs 647 while its 52-week low is Rs 119.75. At the closing bell, shares of the company were trading at Rs 606.65 per share, up 9.76 per cent with 58,56,752 shares quantity traded on BSE.
Rail Vikas Nigam Limited (RVNL) is awarded a contract by SER HQ-ELECTRICAL/SOUTH EASTERN RAILWAY (Indian Railways) for the design, supply, erection, testing and commissioning of a 132 KV Traction Substation, Sectioning Posts (SPs) and Sub-Sectioning Posts (SSPs) on the Rajkhaswan-Nayagarh-Bolani section of the Chakradharpur division of South Eastern Railway. This EPC mode contract, valued at Rs 191,53,74,279.51 (domestic entity), aims to meet a 3000MT loading target and must be completed within 18 months.
Earlier, RVNL signed a Memorandum of Understanding (MoU) with United Construction Limited, Israel, to collaborate on various infrastructure projects in Israel. These projects could span railways, mass rapid transit systems (MRTS), tunnels, roads (including highways and expressways), bridges, buildings, airports, ports, irrigation, and the power, solar, and wind sectors. In a separate development, KRCL, a joint venture where RVNL holds a 49.76 per cent stake, was awarded a favourable verdict of Rs 584.22 crores by a tribunal in a dispute with the Ministry of Railways.
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 March 31, 2023, RVNL has a strong order book of over Rs 85,000 crores, focusing on railway, metro, and overseas projects.
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According to Quarterly Results, the net sales increased by 17.4 per cent to Rs 6,714.01 crore and net sales increased by 27.5 per cent to Rs 435.34 crore in Q4FY24 compared to Q4FY23. 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 1,26,488 crore and the shares of the company have an ROE of 20 per cent and an ROCE of 19 per cent.
In June 2024, FIIs increased their stake to 3.13 per cent and DIIs increased their stake to 6.77 per cent compared to March 2024. The stock gave multibagger returns of 402 per cent in just 1 year and a whopping 2,455 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.
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