Rs 97,000 crore order book: Railway infrastructure company bags new order of Rs 729,82,19,992.45 from HPSEBL

The stock gave multibagger returns of 400 per cent in just 2 years and a whopping 1,600 per cent in 5 years.

Rail Vikas Nigam Limited (RVNL) has been awarded a substantial domestic contract by the Himachal Pradesh State Electricity Board Limited (HPSEBL) for the "Development of Distribution Infrastructure at CENTRAL ZONE of Himachal Pradesh under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme (Loss Reduction Work)." This 24-month project, valued at Rs 729,82,19,992.45 (including applicable taxes), aims to enhance the distribution network and reduce losses within the central zone of Himachal Pradesh. The contract, secured through a competitive tender process, signifies RVNL's continued involvement in crucial infrastructure development projects, contributing to the improvement of power distribution efficiency in the region.

Earlier, the company secured a significant domestic contract from Central Railway, valued at ₹135,66,41,737.92, to execute the "Design, Supply, Erection, Testing & Commissioning of 132/55 KV Traction Substation, Sectioning post (SPs) and Sub sectioning post (SSPs) in 2 x 25 KV Traction System (Scott Connected Transformer) of Bhusaval - Khandwa Sections" on an EPC basis, aiming to meet a 3000 MT loading target. The project, awarded under tender number BSL-TDC-2024-EPC04, is to be completed within 24 months, adhering to 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 December 31, 2024, RVNL has a strong order book of Rs 97,000 crore, focusing on railway, metro and overseas projects.

According to Quarterly Results, the net sales decreased by 2 per cent to Rs 4,591 crore and net profit declined by 10 per cent to Rs 295 crore in Q3FY25 compared to Q3FY24. 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 70,000 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 400 per cent in just 2 years and a whopping 1,600 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.