Rs 83,221 Crore Order Book: Railway Infrastructure Company Bags Order Worth Rs 294,94,80,683.34 from South Central Railway

The stock gave multibagger returns of 150 per cent in just 1 year and a whopping 1,600 per cent in 5 years.

Rail Vikas Nigam Limited receives letter of acceptance (LOA) from South Central Railway for Engineering Procurement Construction (EPC) Contract of Doubling of Track between Navipet station (Excl) From Km 446.900 to Indalvai Station (Incl) Km 482.900 (33.70 km), {Excluding Nizamabad Yard from Km 458.825 to 461.125 (i.e.) 2.3 Km} including Electrification & Signaling works in of South-Central Railway in connection with Mudkhed-Medchal Doubling Project in the State of Telangana. The order is worth Rs 294,94,80,683.34 and will be completed within 24 Months from LOI.

Earlier, Rail Vikas Nigam Limited - HFCL Limited – Aerial Telecom Solutions Pvt Ltd. Consortium emerged as the Lowest Bidder (L1) twice from Bharat Sanchar Nigam Limited (BSNL) for the development, upgradation, operation, and maintenance of the middle mile network of Bharat Net on a Design Build Operate and Maintain (DBOM) model. The first order, valued at Rs 1917,39,85,691.88, and the second order, worth Rs 5008,20,35,544.26, are to be executed over a period of three years for construction and ten years for maintenance. The maintenance contract will be charged at 5.5 per cent per annum of capex for the first 1.5 years and 6.5 per cent per annum of capex for the subsequent five years.

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 over Rs 86,000 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 150 per cent in just 1 year and a whopping 1,600 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.