The equity benchmark indices BSE Sensex and NSE Nifty failed to sustain their opening gains and ended Friday’s trading session on a lower note, mirroring weak global sentiment after the US dollar hit a multi-week high level.
The NSE Nifty 50 closed 65.90 points or 0.28 percent lower to finish the day’s trading at 23,501.10 while the BSE Sensex dipped 269.03 points or 0.35 percent to finish the day’s trading at 77,209.90.
Listed below is one such large-cap railway stock that has delivered multibagger returns of 1,260 percent to its stakeholders in 2 years:
With a market capitalization of Rs. 85,507 cores, the shares of Rail Vikas Nigam Ltd (RVNL) started Friday’s trading session on a lower note at Rs. 385.60 compared to its previous close of Rs. 387.30. During the trading session, the shares hit a high of Rs. 417.40, gaining around 7 percent and closed the day at 410 apiece.
In June 2022, the stock price was trading at Rs. 30 exhibiting a gain of around 1,260 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 2 years ago, it would have converted to approximately Rs. 13.60 lakhs now.
Looking at the company’s financial statements, the revenue zoomed by 43 percent from Rs. 4,689.33 crores in the December quarter to Rs. 6,714.01 in the March quarter. In addition, the net profits jumped by 33 percent from Rs. 358.57 crores to Rs. 478.4 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue increased by 17 percent from 5,720 crores during Q4FY23 to Rs. 6,714.01 crores in Q4FY24. On the other hand, the net profits surged by 33 percent from Rs. 359 crores to Rs. 478.4 crores during the same timeframe.
Rail Vikas Nigam has achieved a significant milestone with its order book reaching around Rs. 85,000 crores, out of this, Rs. 40,000 crores belongs to the bid portion and Rs. 45,000 crores to the nomination portion.
Moreover, during FY23-24, the railway company participated in 142 bids, contributing to a total of 286 bids submitted. The company has achieved a bidding success rate exceeding 20 percent.
These bids included ventures in international markets such as Bangladesh, Maldives, Sri Lanka, UAE, Oman, Rwanda, Uzbekistan, Saudi Arabia, and Nepal.
As per the latest data, for FY 2025, the company aims to clock Rs. 23,000 crores in revenue and end the year with an order book between Rs. 92,000 crores to Rs. 1 lakh crore. Further, it expects to win orders between Rs. 20,000 crore to Rs. 25,000 crore in the financial year 2025. In addition, the PSU company looks to transform the local scenario with global infra levels, focusing mainly on railway, metro, and other segments.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18 percent and a return on capital employed (RoCE) of 16.74 percent for the period spanning FY23-24. Additionally, during the same timeframe, the net profit margin stood at 6.71 percent.
Headquartered in New Delhi, Rail Vikas Nigam was incorporated in 2003. The company is engaged in the business of constructing Rail Infrastructure projects in India. The company undertakes rail project development and implementation projects as well as provides financial resource mobilization services to its customers spanning various Central and State Government Ministries, departments, etc.
Written By Vaibhav Patil
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