Rs 85,000 crore order book: LIC-backed multibagger railway infra company bags new order worth Rs 138,45,86,991.62 from Central Railway
The stock gave multibagger returns of 425 per cent in just 1 year and a whopping 2,300 per cent in 5 years.
Rail Vikas Nigam Ltd (RVNL) bagged an order worth Rs 138,45,86,991.62 from Central Railway for OHE modification work for the up-gradation of the existing 1 x 25 kV Electric Traction System to 2 x 25 kV AT Feeding System in Amla-Nagpur Section in Nagpur division of Central Railway to meet 3000 MT loading target. The order will be completed in 24 months.
Additionally, RVNL has been busy securing new projects and collaborations. They recently won a significant order worth Rs 187,34,07,261 for constructing metro stations in Nagpur, India from Maharashtra Metro Rail Corporation Limited (Nagpur Metro).
Furthermore, RVNL signed two Memorandums of Understanding (MoUs) to expand their reach and services. One MoU with IMS Consultancy Private Limited (IMS) allows RVNL to leverage IMS's expertise in technical and advisory services for various infrastructure projects in Nepal, including railways, tunnels, roads, bridges, and power sectors. The other MoU with TATWEER Middle East and Africa LLC (TATWEER) focuses on international collaboration. This partnership aims to utilize RVNL's railway expertise in the MENA region and Europe, while also exploring joint ventures in designing and executing railway projects. Furthermore, the MoU with TATWEER expands RVNL's service offerings to include smart city solutions, digital transformation, and professional engineering services.
On Friday, shares of Rail Vikas Nigam Ltd (RVNL)gained 2.38 per cent and made a fresh new 52-weel high of Rs 645 per share from its previous closing of Rs 630.
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 20.30 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33 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.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
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 Board recommended a final dividend of Rs 2.11 per share (i.e. 21.10 per cent) on the paid-up equity share capital for the financial year 2023-24.
In March 2024, the President of India’s portfolio sold 11,17,57,277 shares and decreased their stake to 72.84 per cent compared to 78.20 per cent in March 2023. The company has a market cap of over Rs 1,30,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 18 per cent. The stock gave multibagger returns of 425 per cent in just 1 year and a whopping 2,300 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.
Also Read: President of India bought 12,39,77,188 shares of this multibagger stock under Rs 75; LIC owns 1.86 per cent stake & Stock zooms over 13 per cent!