Rs 97,000 crore order book: Railway infrastructure company emerges as lowest bidder (L1) for order of Rs 143,37,87,127.90 from Southern Railway
The stock gave multibagger returns of 375 per cent in just 2 years and a whopping 1,800 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) emerges as the Lowest Bidder (L1) from Southern Railway for upgradation work of the electric traction system from 1x25 kV to a 2x25 kV traction system for Salem Jn. (SA)-Podanur Jn. (PTJ) & Irugur (IGU)-Coimbatore Jn. (CBE)- Podanur Jn. (PTJ) section of the Salem division of the Southern Railway to meet the 3000 MT loading target. The order is worth Rs 143,37,87,127.90 and will be completed within 2 months.
Earlier, the company emerged as the Lowest Bidder (L1) from Central Railway for OHE modification work for up-gradation of the existing 1x25 KV electric traction system to 2x25 KV at the feeding system in the Itarsi-Amla section in Nagpur division of Central Railway to meet a 3000 MT loading target. The order is worth Rs 115,79,37,241.11 and will be completed within 2 months.
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.
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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 375 per cent in just 2 years and a whopping 1,800 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.