Rs 85,000 crore order book: This multibagger railway infra company bags new orders worth Rs 229,20,48,323.26 from Ministry of Railways

The stock gave multibagger returns of 235 per cent in just 1 year and a whopping 1,400 per cent in 5 years.

Today, shares of Rail Vikas Nigam Ltd (RVNL) gained 1.19 per cent to Rs 413.90 per share from its previous closing of Rs 409.50. The stock’s 52-week high is Rs 432 while its 52-week low is Rs 117.35.

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.

Rail Vikas Nigam Ltd (RVNL), a government-owned company under the Ministry of Railways in India, has been busy securing contracts for railway signalling projects. These projects will improve safety and efficiency on important railway routes.

One project involves upgrading the signalling system on a 78.6-kilometer section between Ernakulam Junction and Vallattol Nagar on the B-Route of Thiruvananthapuram Division in Southern Railway. This project will be executed by a joint venture between RVNL (holding a 49 per cent stake) and Kerala Rail Development Corporation Ltd (KRDCL) with the remaining 51 per cent stake. The total value of the contract is Rs 156,47,03,304.52 (approximately Rs 156 crore) and must be completed within 750 days.

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The other project focuses on upgrading the signalling system on a section between Dhaulpur and Gwalior in the Jhansi Division of the North Central Railway. This project involves installing Electronic Interlocking (EI) based Automatic Signalling with continuous track circuiting and related works. Awarded directly to RVNL, the contract is valued at Rs 72,73,45,018.74 (approximately Rs. 72.7 crore) and needs to be completed within 455 days.

These projects showcase RVNL's role in modernizing India's railway infrastructure. Upgrading to automatic signalling systems will not only enhance safety but also increase line capacity and improve train operations on these significant routes.

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 87,000 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 235 per cent in just 1 year and a whopping 1,400 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.