Rs 97,000 crore order book: Railway infrastructure company receives new order of Rs 135,66,41,737.92 from Central Railway
The stock gave multibagger returns of 500 per cent in just 2 years and a whopping 1,500 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) has 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.
Earlier, the company has significantly expanded its project portfolio with two new wins from South Western Railway, securing both as the lowest bidder (L1); the first project, valued at Rs 156.36 crore, involves the EPC of a 2x25 KV OHE & PSI system, including associated electrical and telecommunication works, between Rayadurga and Topavagada, expected to be completed in 18 months, and the second, worth Rs 355.43 crore, entails the survey, design, supply, installation, testing, and commissioning of KAVACH equipment across 790 RKM of Hubballi & Mysuru Divisions, also with an 18-month completion timeline.
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.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
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 500 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.