Share price of a Navratna CPSE (Central Public Sector Enterprises) under the Ministry of Railways (MoR) surged 3.2 percent on BSE to hit an intraday high at Rs. 386.5 on Monday, after the company emerged as the Lowest Bidder from Southern Railway for a project worth Rs. 156.47 crore.
With a market capitalisation of Rs. 78,282 crore, at 12:38 p.m., the shares of Rail Vikas Nigam Limited (RVNL) were trading in the green at Rs. 375.75, up by 0.4 percent, compared to its previous closing price of Rs. 374.4.
According to the recent regulatory filings with the stock exchanges, Rail Vikas Nigam Limited announced its joint venture (JV), KRDCL-RVNL emerged as the Lowest Bidder (L1) from Southern Railway for a project valued at Rs. 156.47 crore.
The contract includes the provision of Automatic Signalling on Ernakulam JN(ERS) – Vallattol Nagar (VTK) Section on B-Route of Thiruvananthapuram Division in the Southern Railway, to be executed in 750 days.
The JV comprise RVNL holding a 49 percent stake and Kerala Rail Development Corporation (KRDCL) holding a 51 percent stake.
Earlier this month on 5th June, RVNL was declared as the Lowest Bidder (L1) from Dakshin Haryana Bijli Vitran Nigam (DHBVN) Limited for the implementation of SCADA and DMS/OMS works in Gurugram Revamped Distribution Sector Scheme (RDSS) in DHBVN, with the project valued at ~Rs. 124.4 crore.
In terms of financials, the company’s revenue from operations grew by 17.4 percent YoY from Rs. 5,719.83 crore in Q4 FY22-23 to Rs. 6,714 crore in Q4 FY23-24, accompanied by an increase in net profit by 33.2 percent from Rs. 359.25 crore in Q4 FY22-23 to Rs. 478.4 crore in Q4 FY23-24.
As per the shareholding pattern of March 2024, the Promoters hold a 72.84 percent stake in the company, Foreign Institutional Investors hold a 2.32 percent stake, while Retail Investors and Domestic Institutional Investors hold an 18.66 percent and 6.18 percent stake in RVNL, respectively.
RVNL’s shares have delivered multibagger returns of nearly 203 percent in the last one year and around 106.2 percent returns year-to-date.
Rail Vikas Nigam Limited (RVNL) along with its Subsidiary and JVs is engaged in implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and production units.
Written by Shivani Singh
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