Shares of this multibagger rail stock were in focus after the company signed a Memorandum of Understanding (MoU) for Public Transportation & Infrastructure Projects in India. In the past six months, the company’s stock has delivered more than 50 percent returns to its holders.
With a market capitalization of Rs 53,689.27 crores, the stocks of Rail Vikas Nigam Limited started their trading session on Friday at Rs 254.25 and currently trade at Rs 257.50, having a flat movement compared to its previous close of Rs 259.65 apiece.
In a recent filing with the Bombay Stock Exchange (BSE), the rail company announced that it has signed an MoU with “M/s Turkish Engineering Consulting & Contracting – TUMAS India Private Limited” for collaboration for Public Transportation & Infrastructure Projects in India.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, witnessed a marginal dip in numbers with the former moving down from Rs 4,914 crores during Q2FY24 to Rs 4,689 crores during Q3FY24, and the latter, shifting down from Rs 394 crores to Rs 359 crores.
Furthermore, the company’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY22-23 with the former reported at 19.39 percent and the latter at 15.88 percent.
Keeping a purview of the last year, the company’s stock delivered multibagger returns of approximately 245 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3.45 lakhs.
As per the latest presentations, the company’s order book stands at around Rs 65,000 crores covering all the rail & market-based projects.
The company also targets a turnover of Rs 20,000 crores – 22,000 crores with bottom-line growth strategies. In addition, the Navratna company looks to transform the local scenario with global infra levels, focusing mainly on railway, metro, and other segments.
Incorporated in 2003, Rail Vikas Nigam Limited (RVNL) 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 Amit Madnani
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