Rs 83,221 crore order book: Multibagger railway infrastructure company bags new order worth Rs 202,87,57,512.14 from Southern Eastern Railway

The stock gave multibagger returns of 375 per cent in just 1 year and a whopping 2,390 per cent in 5 years.

On Friday, shares of Rail Vikas Nigam Ltd (RVNL) gained 6.11 per cent to an intraday high of Rs 614.80 per share from its previous closing of Rs 579.35. The stock’s 52-week high is Rs 647 while its 52-week low is Rs 129.9. At the closing bell, shares of the company were trading at Rs 608.45 per share, up 5.02 per cent with a spurt in volume by more than 2.37 times on BSE.

Rail Vikas Nigam Limited has received a Letter of Acceptance from SER HQ ELECTRICAL/SOUTH EASTERN RAILWAY for the design, supply, erection, testing & commissioning of 132 KV Traction Substation, Sectioning post (SPs), and Sub sectioning post (SSPs) in 2x25KV System on Kharagpur - Bhadrak section of Kharagpur division of South Eastern Railway to meet 3000MT. The order is worth Rs 202,87,57,512.14 and will be completed in 18 months from LOI.

Additionally, RVNL has signed a MoU with Patel Engineering Limited. Main Objectives of the MoU is cooperated and create an enabling framework for achieving synergies in the areas concerning Hydro and other infrastructure Projects and when opportunities arise in India and Overseas.

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 1,26,863 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 375 per cent in just 1 year and a whopping 2,390 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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