Rs 83,221 crore order book: Railway infrastructure company bags new order worth Rs 270,00,78,283.48 from Maharashtra Metro Rail Corporation Ltd

The stock gave multibagger returns of 160 per cent in just 1 year and a whopping 1,950 per cent in 5 years.

Rail Vikas Nigam Limited (RVNL) has been awarded a contract by Maharashtra Metro Rail Corporation Limited for the construction of ten elevated metro stations as part of the Nagpur Metro Rail Project (NMRP) Phase-2. This domestic contract includes seven stations in Reach 3A (Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur, Hingna Bus Station, and Hingna) and three stations in Reach 4A (Pardi, Kapsi Khurd, and Transport Nagar). The project, governed by general contract conditions, is valued at Rs 270,00,78,283.48 and is expected to be completed within 30 months.

Earlier, RVNL secured two contracts. The first, worth Rs 186.77 crore, from East Central Railway, is for the design, supply, erection, testing, and commissioning of Traction Substations and Switching Posts in the Gomoh-Patratu section, upgrading the electric traction system to 2x25 KV AT. Completion is expected within 540 days. RVNL also secured a Rs 642.57 crore contract from Punjab State Power Corporation Limited (PSPCL) to develop distribution infrastructure in Punjab's Central Zone, reducing HT/LT infrastructure losses under the RDSS scheme. This contract is slated for completion within 24 months.

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 1,00,000 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 160 per cent in just 1 year and a whopping 1,950 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.