Shares of Rail Vikas Nigam Limited are in the red today witnessing a fall of around 1 percent and currently trading at Rs 104. Considering movements in the last 5 trading sessions, the stock has jumped more than 32 percent ranging from Rs 79 to the current levels.
Keeping a purview of 6 months, the stock has been able to deliver multibagger returns of approximately 150 percent. It means that if someone would have invested Rs 1,00,000 in the stock, it would have converted to Rs 2,50,000 within a period of 6 months.
During FY22-23, the total order book of RVNL was around Rs 55,000 crores, and for the current financial year, it estimates the same to be within a range of Rs 75,000 – Rs 1,00,000 crores.
The company, through a regulatory filing with the exchange, announced the upgradation of its status from a ‘Mini-Ratna’ stock to a ‘Navratna’ stock. The company will be the 13th Navratna amongst the other Central Public Sector Enterprises (CPSEs).
Rail Vikas Nigam Limited (RVNL) is a special-purpose vehicle that is engaged in undertaking development projects. The company is mainly focused on mobilizing financial resources and project implementations. It works on a turnkey basis and undertakes the full cycle of project development from conceptualization to commissioning of the projects.
Having a walkthrough of the financials reported by the company on a quarterly basis, the revenues as well as net profits have shown decent growth with revenues going up from Rs 4,909 crores in Q2 to Rs 5,012 crores in Q3 and net profits, during the same period, increasing from Rs 303 crores to Rs 340 crores.
The basic operational metrics such as the return on equity (ROE) went up from 18.44 percent in FY20-21 to 19.66 percent in FY21-22. Another one is the return on capital employed (ROCE) which moved from 15.69 percent to 16.82 percent keeping the timeframe the same.
Net profit margins of the company, on a contrasting note, have shown a downfall from 6.44 percent during FY20-21 to 6.1 percent in FY21-22.
The debt-to-equity ratio of the company, though slightly above the desired levels, has marginally reduced from 1.05 in FY20-21 to 1.03 in FY21-22.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
