Shares of this large-cap company surged around 9 percent in Friday’s trading session after signing MoU with Delhi metro for participation in upcoming projects in India and abroad. In just six months, the shares have delivered a multi-bagger return of around 145 percent to its shareholders. 

Price Movemnet: 

With a market capitalization of Rs. 94,451 crores, shares of Rail Vikas Nigam Ltd started Friday’s trading session on a higher note at Rs. 424.95 compared to its previous close of Rs. 418.75. During the trading session, the shares hit a high of Rs. 455, gaining around 9 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 450 apiece. 

What Happened: 

Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had signed an MoU with Delhi Metro Rail Corporation Limited (DMRC) for participation in the upcoming projects in India and abroad as a Project Service Provider for Metro, Railways, High-Speed Rail, Highways, MegaBridges, Tunnels, Institutional Buildings/ Workshops or Depots, S&T works, and Railway Electrification. 

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Looking at the company’s financial statements, the revenue zoomed by 43 percent from Rs. 4,689.33 crores in the December quarter to Rs. 6,714.01 in the March quarter. In addition, the net profits jumped by 33 percent from Rs. 358.57 crores to Rs. 478.4 crores during the same period. 

Comparing the same metrics on a YoY basis, the revenue increased by 17 percent from 5,720 crores during Q4FY23 to Rs. 6,714.01 crores in Q4FY24. On the other hand, the net profits surged by 33 percent from Rs. 359 crores to Rs. 478.4 crores during the same timeframe. 

Order Book: 

Rail Vikas Nigam has achieved a significant milestone with its order book reaching around Rs. 85,000 crores, out of this, Rs. 40,000 crores belongs to the bid portion and Rs. 45,000 crores to the nomination portion. 

Future Outlook: 

As per the latest data, for FY 2025, the company aims to clock Rs. 23,000 crores in revenue and end the year with an order book between Rs. 92,000 crores to Rs. 1 lakh crore. 

Further, it expects to win orders between Rs. 20,000 crore to Rs. 25,000 crore in the financial year 2025. In addition, the PSU company looks to transform the local scenario with global infra levels, focusing mainly on railway, metro, and other segments. 

Financial Ratio: 

In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18 percent and a return on capital employed (RoCE) of 16.74 percent for the period spanning FY23-24. Additionally, during the same timeframe, the net profit margin stood at 6.71 percent. 

Company Profile: 

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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