The shares of this Navratna firm climbed around 3 percent to an intraday high of Rs 626.65 apiece from its previous close, after it received an order worth over Rs 739.07 crores from Himachal Pradesh State Electricity Board Limited (HPSEBL) for the improvement of distribution infrastructure.
Share price movement: With the market capitalization of Rail Vikas Nigam Limited standing at Rs 1,27,863 crores, the share price surged by 1.09 percent at 12:40 pm trading at Rs 614 levels on Tuesday and generated both multi-bagger returns of 400 percent and 107 percent over the last one year and 6 months respectively.
What happened: As per the exchange filings published by Rail Vikas Nigam Limited through BSE, the company has received an order worth Rs 739.07 crores from Himachal Pradesh State Electricity Board Limited (HPSEBL) for the improvement of distribution infrastructure in the Central Zone of Himachal Pradesh. The work order requires to be executed within 24 months.
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Financials: Reviewing the financials of Rail Vikas Nigam Limited on a year-on-year basis, the revenues rose by 7 percent from Rs 20,282 crores in FY23 to Rs 21,733 crores in FY24. In the same time frame, the net profits increased from Rs 1,268 crores to Rs 1,463 crores demonstrating a 15 percent increase.
Borrowings and cash flow from operations: From FY23 – FY24, The borrowings of Rail Vikas Nigam Limited declined by 6.3 percent from Rs 6,441 crores to Rs 6,033 crores. Also in the same period, the company’s cash flow from operations transitioned from a negative cash flow of Rs 4,080 crores to a positive cash flow of Rs 2,939 crores.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 18 percent and a return on capital employed (ROCE) of 16.74 percent. It has also reported a debt-to-equity ratio of 0.68 times.
Recent orders: Recently, Rail Vikas Nigam Limited has received an order worth Rs 191.53 crores from the South Eastern Railway for a project to design, supply, install, test, and commission a 132 KV Traction Substation and related equipment on the Rajkhaswan-Nayagarh-Bolani section. This project aims to meet a 3,000 MT loading target. Currently, the order book of RVNL Limited stands at around Rs 85,000 crores.
Recent credit ratings:As of April 2024, reports have mentioned that Rail Vikas Nigam has been rated by CARE as follows: its long-term bank facilities of Rs 20 crore have a CARE AAA; Stable rating, indicating very high reliability for long-term borrowing.
For its long-term and short-term bank facilities totaling Rs6,480 crore, the ratings are CARE AAA; Stable for long-term borrowing and CARE A1+ (reaffirmed) for short-term borrowing, reflecting strong creditworthiness.
Shareholding Pattern: As of June 2024, The promoters, The foreign institutional investors, and the Domestic institutional investors of Rail Vikas Nigam Limited held 72.84 percent, 3.13 percent, and 6.77 percent stakes in the firm respectively. For the same period under the DII, LIC India holds a 6.44 percent stake in the firm.
About the Company: Incorporated in the year 2003 by the government of India, Rail Vikas Nigam Limited is engaged in the business of implementing various types of Rail infrastructure projects assigned by the Ministry of Railways which include doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and Production Units.
Written By Zahal
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