Rs 97,000 crore order book: Railway infrastructure company emerges as L1 bidder for order of Rs 156,35,81,976.60 from South Western Railway
The stock gave multibagger returns of 475 per cent in just 2 years and a whopping 1,500 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) has secured a new project as the lowest bidder (L1) from South Western Railway. The project involves Engineering, Procurement, and Construction (EPC) for the design, supply, erection, testing, and commissioning of a 2x25 KV OHE & PSI system, including TSSs, SPs & SSPs, along with electrical general services, engineering, and telecommunication works. This work will be carried out between Rayadurga and Topavagada on the TK-RDG section, covering 99.463 RKM/114.145 TKM. The contract, awarded by a domestic entity (South Western Railway), is valued at Rs 156,35,81,976.60 and is expected to be completed within 18 months.
Additionally, the company emerges as the Lowest Bidder (L1) from South Western Railway for survey, design, supply, installation, testing and commissioning for KAVACH equipment and other associated works over 790 RKM of Hubballi & Mysuru Divisions of South Western Railway. The order is worth Rs 355,43,06,679.42 and will be completed within 18 months.
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 December 31, 2024, RVNL has a strong order book of Rs 97,000 crore, focusing on railway, metro and overseas projects.
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According to Quarterly Results, the net sales decreased by 2 per cent to Rs 4,855 crore and net profit declined by 18 per cent to Rs 302 crore in Q2FY25 compared to Q2FY24. 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 77,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.
In December 2024, FIIs bought 9,90,342 shares and increased their stake to 5.10 per cent compared to September 2024. As of December 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.81 per cent stake. The stock gave multibagger returns of 475 per cent in just 2 years and a whopping 1,500 per cent in 5 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.