Rs 70,000 crore order book and 745 per cent returns: This multibagger railway wagons company receives new order worth Rs 311,17,66,199.68 from Central Railways!

The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 740 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) informed that the company received an order worth Rs 311,17,66,199.68 from Central Railways. The order includes construction of 4 nos Tunnels (total Length 1.6 km) with Ballastless track, earthwork in formation, construction of important bridges (2nos), major bridges (1 no), minor bridges (25 nos), supply of stone ballast, track linking, side drain retaining wall etc in Dharakoh Maramjhiri section in connection with third line and will be completed within 18 months from LOA.

Earlier, the company secured two significant orders from Western Railways worth a total of Rs 419,99,14,853.66. The orders involve a variety of construction activities, including earthwork, blanketing, retaining walls, boundary walls, side drains, major and minor bridges, LHS/RUB, LCs, construction of station buildings, platforms, subways, staff quarters, passenger amenities, circulating areas, approach roads, offices, service buildings, watering, sanitation, protection works, etc. Additionally, the company will supply 50 mm machine crushed stone ballast and complete track works, including linking of track works. Both orders will be completed within 24 months from LOA.

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 September 30, 2023, RVNL has a strong order book of over Rs. 70,000 crores, focusing on railway, metro, and overseas projects.

Today, shares of RVNL plunged 1.40 per cent to Rs 158.45 per share from its previous closing of Rs 160.70 with an intraday high of Rs 160.70 and an intraday low of Rs 158.15.

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 150 per cent in just 1 year and a whopping 740 per cent in 3 years. Investors should keep an eye on this railway stock.

Disclaimer: The article is for informational purposes only and not investment advice.