Shares of this large-cap company jumped 1 percent in Thursday’s trading session after emerging as the lowest bidder for the Eastern Railway project. The shares have delivered a multibagger return of 145 percent in one year to its shareholders.
With a market capitalization of Rs. 60,278 crores, the shares of Rail Vikas Nigam Ltd started Thursday’s trading session on a higher note at Rs. 288 compared to its previous close of Rs. 286.40. During the trading session, the shares hit a high of Rs. 291.85, gaining 1 percent and are currently trading at Rs. 289 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had emerged as the Lowest Bidder from Eastern Railway for the construction of the Sitarampur bye pass line under the Asansol Division of Eastern Railway worth Rs. 390.97 crore and to be completed in 24 months.
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.
Furthermore, a meeting of the board of directors of the railway company will be held on May 15, 2024, to consider, approve, and take on record the audited financial results (standalone and consolidated) of the company for the fourth quarter and year ended 31st March 2024.
Earlier, 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 worth Rs. 439 crores.
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.
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 to 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
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