Rs 83,221 crore order book: Railway infrastructure company bags order worth Rs 404,40,32,985 from East Coast Railway

The stock gave multibagger returns of 475 per cent in just 2 years and a whopping 1,500 per cent in 5 years.

Rail Vikas Nigam Limited (RVNL) has been awarded a contract by East Coast Railway for the Koraput-Singapur Road Doubling Project worth Rs 404,40,32,985. This domestic contract involves the construction of 27 major bridges (22 major bridges and 5 roads over bridges), earthwork for approaches, protection works, and other miscellaneous tasks between Tikiri and Bhalumaska stations within the Waltair Division. The project is expected to be completed within 30 months, under general contract conditions.

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.

AAccording to quarterly results, the net sales decreased by 2 per cent to Rs 4,855 crore and net profit declined by 18 per cent to Rs 302 crore in Q2FY25 compared to Q2FY24. In 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 80,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.

In December 2024, FIIs bought 9,90,342 shares and increased their stake to 5.10 per cent compared to September 2024. As of December 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.81 per cent stake. The stock gave multibagger returns of 475 per cent in just 2 years and a whopping 1,500 per cent in 5 years. Investors should keep an eye on this stock.

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