Rs 83,221 crore order book: Telecom infrastructure company bags new orders worth Rs 1,32,35,57,20,263.45 from BSNL
The stock gave multibagger returns of 440 per cent in just 2 years and a whopping 1,500 per cent in 5 years.
On Thursday, Rail Vikas Nigam Ltd (RVNL) shares gained 11.6 per cent to an intraday high of Rs 415 per share from its previous closing of Rs 371.90 per share. The stock’s 52-week high is Rs 647 per share while its 52-week low is Rs 213 per share. At the closing bell, the shares of the company were trading at Rs 411 per share, up 10.51 per cent from its previous closing of Rs 371.90 per share and saw a spurt in volume by more than 3.84 times on BSE.
Rail Vikas Nigam Limited (RVNL) has secured two significant orders from Bharat Sanchar Nigam Limited (BSNL) for the development and maintenance of the middle-mile network of Bharat Net. These orders, collectively valued at Rs. 1,32,35,57,20,263.45, involve the creation, upgradation, and operation of the network under the Design, Build, Operate, and Maintain (DBOM) model. The contracts are awarded by a domestic entity (BSNL) and are to be executed over three years for construction followed by ten years of maintenance.
The first order, worth Rs. 36,22,14,47,414.08, includes operation and maintenance costs for ten years. RVNL will lead the consortium, which also includes HFCL and ATS. The second order, valued at Rs. 96,13,42,72,849.37, also follows the same consortium structure and has similar terms and conditions. These orders signify a significant step for RVNL in expanding its operations and contributing to the development of India's telecommunications infrastructure.
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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 85,000 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 440 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.