Rs 83,221 crore order book: Multibagger railway infra stock saw spurt in volume by more than 2.20 times on BSE; Company bags order worth Rs 111.4 crore from Southern Railway
The stock gave multibagger returns of 360 per cent in just 1 year and a whopping 2,200 per cent in 5 years.
On Wednesday, shares of Rail Vikas Nigam Ltd (RVNL) gained 3.50 per cent to an intraday high of Rs 596.15 per share from its previous closing of Rs 576.15. The stock’s 52-week high is Rs 647 while its 52-week low is Rs 127.35. At the closing bell, shares of the company were trading at Rs 578.10 per share, up 0.34 per cent with a spurt in volume by more than 2.20 times on BSE.
RVNL has been selected as the Lowest Bidder (L1) by Southern Railway for a contract to provide Moving Block Signaling Automatic Detection (MSDAC) systems in conjunction with existing Dual CTC (Centralized Traffic Control) at stations. These MSDAC systems will serve as dual detection mechanisms. Additionally, the contract involves replacing the remaining Automatic Fixed Train Control (AFTC) systems in the MAS-GDR and MSB-TBM automatic block signalling sections of Chennai Division within Southern Railway. This is a domestic contract awarded by a domestic entity, Southern Railway. The contract encompasses the provision and installation of MSDAC systems and AFTC replacements, aiming to enhance the efficiency and safety of railway operations in the specified sections. The contract is valued at Rs 111,38,95,411.60 (Rs 111.40 crore) and is expected to be executed within 18 months.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
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 Rs 1,20,535 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.
Life Insurance Corporation of India (LIC) bought 1,63,12,399 shares and increased their stake to 6.44 per cent in June 2024 compared to June 2023. In June 2024, FIIs increased their stake to 3.13 per cent and DIIs increased their stake to 6.77 per cent compared to March 2024. The stock gave multibagger returns of 360 per cent in just 1 year and a whopping 2,200 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.
Also Read: FMCG Company Acquires Single Largest Stake in Virat Kohli – Backed Digital First Brand ‘RAGE COFFEE’