Rs 85,000 crore order book: LIC-backed multibagger railway infra company bag new order worth Rs 191,53,74,279.51 from South Eastern Railway
The stock gave multibagger returns of 336 per cent in just 1 year and a whopping 2,400 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) is awarded a contract by SER HQ-ELECTRICAL/SOUTH EASTERN RAILWAY 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 M/s 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.
On Wednesday, shares of Rail Vikas Nigam Ltd (RVNL) gained 0.46 per cent to Rs 593.40 per share from its previous closing of Rs 590.70 with an intraday high of Rs 606.80 and an intraday low of Rs 583. The stock’s 52-week high is Rs 647 while its 52-week low is Rs 119.75.
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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.
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 1,23,725 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 336 per cent in just 1 year and a whopping 2,400 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.
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