The shares of the rail infrastructure developer gained up to 1.03 percent after the company received a letter of acceptance from South Central Railway worth Rs 440 crore.
With a market capitalization of Rs 77,249.99 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 368.25 per share, decreasing around 9 percent as compared to the previous closing price of Rs 404.50 apiece.
As per the company filing, Rail Vikas Nigam Ltd has received a letter of acceptance for the Engineering, Procurement, and Construction (EPC) tender for the proposed “Doubling of Track between Ankai station (Excluding) at KM 16.00 (Ch: 16000) & Karanjgaon stations (Excluding) at Km 69.01 (Ch:69010) (i.e. 53.01 Km) including Electrification and Signaling works in connection with Aurangabad-Ankai Doubling Project in Nanded Division of South Central Railway.”
Moreover, this contract is received by South Central Railway, a domestic Entity, the order should be executed within 30 months from the date it is received.
Looking forward to its financial performance, revenue grew by 17 percent from Rs 5,721 crore in Q4FY23 to Rs 6,701 crore in Q4FY24, during the same time frame, the company’s net profit increased by 25 percent from Rs 345 crore to Rs 433 crore.
The company has an order book of Rs 65,000 crore, with railway projects accounting for 50 percent of the total, the remaining 50 percent comes from the market. RVNL aims to maintain an order book of around Rs 75000 crore in the future.
In 2024, Rail Vikas Nigam Limited (RVNL) received important orders, including metro projects in Madhya Pradesh and Chennai, railway infrastructure for the Western and South Eastern Railways, and distribution infrastructure in Himachal Pradesh. Notably, RVNL has secured orders for Gujarat Metro and Vande Bharat Train sets.
The stock has given a multi-bagger return of 112.53% in just six months and 214% in a year. If an investor invested Rs 1 lakh a year ago, it would now be worth Rs 3.14 lakh.
Rail Vikas Nigam Limited (RVNL) is an India-based firm that develops railway infrastructure. The Company implements rail infrastructure projects including gauge conversion, new lines, electrification, bridges, workshops, and manufacturing units.
Written by:- Abhishek Singh
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