Shares of this large-cap company jumped 3 percent in Wednesday’s trading session after emerging as the lowest bidder for an EPC project worth Rs. 439 crores from Southern Railway. The shares have delivered a multibagger return of 223 percent in one year to its shareholders.
With a market capitalization of Rs. 59,100 crores, the shares of Rail Vikas Nigam Ltd (RVNL) started Wednesday’s trading session on a higher note at Rs. 281 compared to its previous close of Rs. 277.35. During the trading session, the shares hit a high of Rs. 286.20, gaining around 3 percent and closed the day at Rs. 284 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the KRDCL- RVNL joint venture emerged as the Lowest Bidder (L1) from Southern Railway for the Redevelopment of Thiruvananthapuram Central Railway Station on Engineering, Procurement and Construction (EPC) mode for worth Rs. 439 crores.
Coming onto the company’s financial statements, the revenue decreased by 5 percent from Rs. 4,914 crores during the September quarter to Rs. 4,689 crores in the December quarter. On the other hand, the net profits declined by 9 percent from Rs. 394 crores to Rs. 359 crores during the same period.
Earlier, the company announced its successful bid as the Lowest Bidder (L1) for the Engineering, Procurement, and Construction (EPC) tender issued by South Central Railway.
The project entails the doubling of tracks between Ankai and Karanjgaon stations, inclusive of electrification and signalling works, in connection with the Aurangabad-Ankai Doubling Project. Valued at over Rs. 440 crores, RVNL is tasked with completing the project within a timeframe of 30 months.
Rail Vikas Nigam has achieved a significant milestone with its order book reaching Rs. 65,000 crores. This substantial order book is evenly divided between railway projects and market-driven projects, with 50 percent coming from each sector. The company further aims to increase the order book to Rs 75,000 crore in the coming year.
Furthermore, the company’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY22-23 with the former reported at 19.39 percent and the latter at 15.88 percent.
Additionally, the company also targets a turnover of Rs 20,000 crores – 22,000 crores with bottom-line growth strategies. In addition, the PSU company looks to transform the local scenario with global infra levels, focusing mainly on railway, metro, and other segments.
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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
