Rs 85,000 Crore Order Book: Multibagger PSU Railway Company Emerges as L1 Bidder for Rs 270 Crore Project from Maharashtra Metro Rail Corporation – Stock Rallies Over 5 Per cent!
The company’s shares have delivered an impressive multibagger returns of around 200 per cent in just 1 year only.
This Mid-Cap company was incorporated in 2003 by the Government of India. It implements various types of rail infrastructure projects assigned by the Ministry of Railways, including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and production units. The company also shares freight revenue with Railways as per the concession agreement entered with the Ministry of Railways. The company has announced the bagging of a significant work order.
L1 bidder by Maharashtra Metro Rail Corporation
Rail Vikas Nigam Ltd has been declared the Lowest Bidder (L1) by Maharashtra Metro Rail Corporation Limited for the construction of metro stations as part of the Nagpur Metro Rail Project (NMRP) Phase-2. The project involves building elevated metro stations in two sections: 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 contract is valued at Rs 270.01 crore (including GST) and is set to be completed within 30 months.
Past Order
Rail Vikas Nigam Limited has been selected as the Lowest Bidder (L1) by East Coast Railway for the construction of the 3rd and 4th lines between Jarapada and Talcher Road, along with the new line between Angul and Balram (MCRL Inner Corridor Phase-I Doubling, 14 km). The scope of work includes completing the remaining earthwork, constructing minor and major bridges, P-way linking, ballast supply, S&T buildings, level crossings, and other miscellaneous tasks, excluding station yards between Jarapada and Talcher Road for the Jarapada-Budhapank Project, and including station yards for the Angul-Balram section. The project, valued at Rs 283.70 crore (including GST), is expected to be completed within 24 months.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
Stock Performance
On Thursday, Rail Vikas Nigam Ltd's shares opened the day on a bullish note at Rs 489.10 per share, compared to the previous day's closing figure of Rs 479.50 per share on the BSE. The current market capitalization stands at Rs 1.05 lakh crore, and the stock has generated an impressive multibagger return of over 190 per cent in just one year.
Financial Performance
As per the Quarterly Results, in Q1 FY25, Rail Vikas Nigam Ltd recorded a revenue of Rs 4064 crore. The operating profit for Q1 FY25 stood at Rs 176 crore, and the net profit was Rs 218 crore. Looking at the annual performance, the company generated a revenue of Rs 21733 crore in FY24, compared to Rs 20282 crore in FY23. The operating profit for FY24 was Rs 1346 crore, with a net profit of Rs 1463 crore.
Disclaimer: The article is for informational purposes only and not investment advice.