Shares of this multibagger rail stock gained around 4 percent on Friday after bagging a project pertaining to the infrastructure development in Jharkhand. In the last month, the company’s stock has zoomed around 30 percent.
With a market capitalization of Rs 33,808.60 crores, the stocks of Rail Vikas Nigam Limited opened their trading hour on Friday at Rs 159.60 and currently trades at Rs 162.15.
The company’s scrip witnessed an intra-day high of Rs 165.75 gaining around 4 percent as compared to the previous close of Rs 158.90 apiece. The scrip trades near its 52-week high price recorded at a price of Rs 199.35.
The bullish sentiments around the company’s stock were observed after a regulatory filing published by the company with the BSE dated 21st September 2023. The filing mentioned RVNL forming a Joint Venture (JV) company with Tracks & Towers Infratech Private Limited (TTIPL), i.e., ‘Chatra Expressways Private Limited’.
The project, with a total cost of Rs 1,271 crores, pertains to the construction of a 6-lane Greenfield Varanasi Ranchi-Kolkata Highway under ‘Bharatmala Pariyojana’ in the state of Jharkhand. RVNL’s share in the JV company is 49 percent, and, the remaining 51 percent is held by TTIPL.
Keeping a purview of just six months, the company has proven to deliver multibagger returns of 145 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the stock, it would have converted to Rs 2.45 lakhs within a period of six months.
During the past couple of financial years, the company has shown a consistent increase in its basic business indicators such as operating revenues and after-tax profits.
The most recent movement in the operating revenues exhibits an increase from Rs 19,381.71 crores during FY21-22 to Rs 20,281.57 crores during FY22-23, and, the after-tax profits, in congruence, went up from Rs 1,110.14 crores to Rs 1,420.55 crores.
As per the latest shareholding data available for the quarter ended June 2023, the company’s Promoters hold a 78.2 percent stake, and the Foreign Institutional Investors (FIIs) hold a 1.75 percent stake in the company.
Incorporated in 2003, Rail Vikas Nigam Limited is engaged in the business of constructing rail infrastructure projects in India. The company undertakes various railway projects including gauge conversion, new lines, railway electrification, institution buildings, etc.
Written by Amit Madnani
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