With a market capitalization of Rs 25,583 crores, the shares of Rail Vikas Nigam Limited (RVNL) closed today at Rs 122.70, down around 1.40 percent as compared to the previous closing price of Rs 124.45.
Keeping a purview of one year, the stock has delivered multibagger returns of 310 percent. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 4.10 Lakhs within a period of one year.
In a recent filing with the Bombay Stock Exchange (BSE) today, the company announced that it has received three Letters of Acceptance (LoA) from Chennai Metro Rail Limited (CMRL) pertaining to ‘Underground Stations’ for phase-II Project in the city. The aggregate value of the contract comes up to Rs 4,058 crores.
The latest financial numbers represent an operating revenue of Rs 20,281 crores as compared to Rs 19,381 crores of revenues in the previous financial year. Likewise, the Profit After Tax (PAT) figures increased from Rs 1,079 crores during FY21-22 to Rs 1,261 crores in FY22-23.
In addition to the above, the company has been successful in increasing its margins by reporting a net profit margin of 5.56 percent during FY21-22 and 6.22 percent in FY22-23.
There have been slight improvements in the profitability metrics such as the return on equity (ROE) and return on capital employed (ROCE) with the former increasing from 18.48 percent during FY21-22 to 19.39 percent in FY22-23 and the latter, keeping the timeframe the same, moved from 15.05 percent to 15.88 percent.
According to the shareholding data available for the March 2023 quarter, Promoters hold a 78.2 percent stake, and Foreign Institutional Investors (FIIs) hold a 1.53 percent stake in the company.
Rail Vikas Nigam Limited (RVNL) is a special-purpose entity executing various railway projects that comprise gauge conversion, major bridges, metro projects, etc. It also works on a turnkey basis undertaking the full cycle of project development right from the conceptualization to contract management.
Written by Amit Madnani
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