FIIs bought 9,90,342 shares & Rs 83,221 crore order book: Railway infrastructure stock jumps 9 per cent from intraday low on January 31

The stock gave multibagger returns of 520 per cent in just 2 years and a whopping 1,600 per cent in 5 years.

On Friday, Rail Vikas Nigam Ltd (RVNL) shares gained 9.12 per cent to Rs 476 per share from its intraday low of Rs 436.20 per share. The stock’s 52-week high is Rs 647 per share while its 52-week low is Rs 213 per share. The shares of the company saw a spurt in volume by more than 3 times.

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 declined 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 85,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.

Recently, the company has secured two significant orders from Bharat Sanchar Nigam Limited (BSNL) for the development and maintenance of the middle-mile network of Bharat Net. These orders, collectively valued at Rs. 1,32,35,57,20,263.45, involve the creation, upgradation, and operation of the network under the Design, Build, Operate, and Maintain (DBOM) model. The contracts are awarded by a domestic entity (BSNL) and are to be executed over three years for construction followed by ten years of maintenance. The first order, worth Rs. 36,22,14,47,414.08, includes operation and maintenance costs for ten years. RVNL will lead the consortium, which also includes HFCL and ATS. The second order, valued at Rs. 96,13,42,72,849.37, also follows the same consortium structure and has similar terms and conditions. These orders signify a significant step for RVNL in expanding its operations and contributing to the development of India's telecommunications infrastructure.

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 520 per cent in just 2 years and a whopping 1,600 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.