Shares of Rail Vikas Nigam Limited (RVNL) surged 8.67% on Monday’s early trades to reach an intraday high of ₹ 74.55 apiece after the company received multiple orders aggregating to an amount of more than ₹ 16,000 crores. At 12:25 PM, its shares were trading at ₹ 74.25 apiece, up 8.24%
A consortium of Tracks & Towers Infratech Pvt. Ltd. and RVNL received an order worth ₹ 1271.99 crores from NHAI for the construction of a six-lane greenfield Varanasi-Ranchi-Kolkata highway.
The state-owned company received a letter of award from the Ministry of Railways for the manufacturing and maintenance of 120 Vande Bharat Train Sets at a cost of ₹ 120 crores per train set. Moreover, it received a letter of award from the NHAI for the construction of a six-lane elevated Kona Expressway for ₹ 720.67 crores.
RVNL has given multibagger returns of 118.64% in the past year as its share price increased from ₹ 33.80 to ₹ 73.90 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.18 lakhs today!
RVNL is a small-cap company with a market capitalization of ₹ 14,303 crores. It has an ideal return on equity of 19.66%, an ideal debt-to-equity ratio of 0.91 and a high dividend yield of 2.94%. The company has a return on capital employed of 16.82%.
Rail Vikas Nigam Ltd. was incorporated as a Public Sector Undertaking to undertake and execute project development, financing and implementation of projects related to rail infrastructure.
Written by Simran Bafna
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