The shares of this multibagger rail stock hit its 52-week high in Tuesday’s trading session after the company successfully emerged as the lowest (L1) bidder for a project worth Rs 251 crores in Jabalpur, Madhya Pradesh.
With a market capitalization of Rs 46,568.92 crores, the stocks of Rail Vikas Nigam Limited (RVNL) opened their trading session on Tuesday at Rs 225.15 and currently trade at Rs 223.50.
The scrip witnessed an intra-day high, also marked as the fresh 52-week high price, of Rs 231.80 exhibiting a gain of approximately 5 percent compared to the previous close of Rs 220.70 apiece.
Such bullish stock price movements were observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has successfully emerged as the lowest (L1) bidder for a project worth approximately Rs 251 crores based in Jabalpur, Madhya Pradesh.
The project pertains to the supply, installation, testing, and commissioning of 11 KV Line associated works such as 11 KV Line Bifurcation, 11KV Line conductor Augmentation, 11 KV Line Interconnection, LT AB cabling augmentation, and conversion of LT Bare conductor to AB cabling under Revamped Results-linked and Reforms-based Distribution sector.
In addition, the time period for the execution of the abovementioned project is decided to be 24 months.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of around 188 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.88 lakhs.
Having a glance at the financial statements, the company, during the recent quarters, showed opposing movements as far as the operating revenues and net profits are concerned.
The former, on one end, shifted down from Rs 5,571 crores during Q1FY23-24 to Rs 4,914 crores during Q2FY23-24, and the latter, on the other end, rose from Rs 335 crores to Rs 370 crores due to effective cost management.
Incorporated in 2003, Rail Vikas Nigam Limited is an India-based company engaged in the construction of rail infrastructure projects. The company undertakes the development and implementation of rail projects and also provides financial resource mobilization services. It serves the Indian Railways and various public sector undertakings.
Written by Amit Madnani
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