Rs 85,000 crore order book: This multibagger railway infra company incorporated subsidiary company in DUBAI; details inside!

The stock gave multibagger returns of 237 per cent in just 1 year and a whopping 1,390 per cent in 5 years.

Rail Vikas Nigam Limited (RVNL), a public sector enterprise under the Indian Ministry of Railways, has expanded its reach by establishing a subsidiary company called "RVNL MIDDLE EAST CONTRACTING L.L.C" in Dubai, United Arab Emirates. This new entity will allow RVNL, known for its railway infrastructure expertise in India, to participate in projects and contracts in the Middle East, potentially offering their construction and development services to countries in the region.

Earlier, the company secured 2 contracts for crucial signalling projects. One project involves a joint venture with Kerala Rail Development Corporation to upgrade the signalling system on a 78.6-kilometre stretch between Ernakulam Junction and Vallattol Nagar, aiming to improve safety and efficiency for approximately Rs 156 crore. Another project, awarded directly to RVNL, focuses on upgrading the signalling system between Dhaulpur and Gwalior with Electronic Interlocking technology for around Rs 72.7 crore. These projects, with completion timelines of 750 and 455 days respectively, highlight RVNL's commitment to enhancing safety, line capacity, and overall train operations on these vital routes.

Today, shares of Rail Vikas Nigam Ltd (RVNL) gained 1.27 per cent to Rs 419.15 per share from its previous closing of Rs 413.9. The stock’s 52-week high is Rs 432 while its 52-week low is Rs 117.35.

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 20.30 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33 per cent. As of March 31, 2023, RVNL has a strong order book of over Rs 85,000 crores, focusing on railway, metro, and overseas projects.

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According to Quarterly Results, the net sales increased by 17.4 per cent to Rs 6,714.01 crore and net sales increased by 27.5 per cent to Rs 435.34 crore in Q4FY24 compared to Q4FY23. 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 Board recommended a final dividend of Rs 2.11 per share (i.e. 21.10 per cent) on the paid-up equity share capital for the financial year 2023-24.

In March 2024, the President of India’s portfolio sold 11,17,57,277 shares and decreased their stake to 72.84 per cent compared to 78.20 per cent in March 2023. The company has a market cap of over Rs 87,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 18 per cent. The stock gave multibagger returns of 237 per cent in just 1 year and a whopping 1,390 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.