Rs 83,221 Crore Order Book: Railway Infrastructure Company Bags Order Worth Rs 837,67,19,698.44 from Eastern Railway

The stock gave multibagger returns of 155 per cent in just 1 year and a whopping 1,655 per cent in 5 years.

Rail Vikas Nigam Limited (RVNL) informed that RVNL- SCPL (JV) has received Letter of Acceptance from Eastern Railway for “Earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, RUB, ROB, retaining wall, level crossing, side drain, catch water drain, P. Way work and other ancillary works from IR Ch. 205.000 km to 260.2 Km between Kalipahari (inc.) to Pradhankhuta (exc.) in connection with construction of multi tracking Railway BG line. The order is worth Rs 837,67,19,698.44 and will be completed within 36 months from LOA.

Earlier, Rail Vikas Nigam Limited (RVNL) has secured significant contracts. The consortium of RVNL-HFCL Limited-Aerial Telecom Solutions Pvt Ltd has been awarded two major orders from Bharat Sanchar Nigam Limited (BSNL) for the development and maintenance of the Bharat Net middle mile network. The total value of these two orders is substantial, amounting to Rs 1,917,39,85,691.88 and Rs 5,008,20,35,544.26 respectively. Furthermore, RVNL has received a contract from South Central Railway for track doubling and electrification works in Telangana, valued at Rs 294,94,80,683.34. These contracts underscore RVNL's strong position in the railway infrastructure and telecommunications sectors, and its commitment to delivering high-quality projects.

About the Company

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 June 30, 2024, RVNL has a strong order book of Rs 83,221 crores, focusing on railway, metro and overseas projects.

According to Quarterly Results, the net sales decreased by 27 per cent to Rs 4,073.80 crore and net profit decreased by 34 per cent to Rs 222.56 crore in Q1FY25 compared to Q1FY24. 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 87,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.

In September 2024, FIIs increased their stake to 5.05 per cent and DIIs decreased their stake to 6.33 per cent compared to June 2024. As of September 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.96 per cent stake. The stock gave multibagger returns of 155 per cent in just 1 year and a whopping 1,655 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.