This railway stock rose 3.4% after winning multiple projects from the Maharashtra Metro Rail Corporation Limited as the company emerged to be the lowest bidder possible. It won several metro rail infrastructure projects.
Shares of RVNL opened at Rs. 130.5 per piece and gained 3.4% to reach its intra- day high of Rs. 132.80 per share. The stock gave a multibagger return of 289.98% and 504.71% in the last one and three years.
On 30 August 2023, the company was awarded a total of five projects from Maharashtra Metro Rail Corporation Limited. RVNL emerged as the lowest bidder (L1) for all of the followings projects:-
- Six Elevated Metro Station viz. Pili Nadi to Lekha Nagar in Reach-2A
- One Elevated and One At-Grade station viz. Ecopark and Metro City in Reach-IA respectively.
- At-Grade Section Formation earthwork, boundary wall and retaining wall between Ch. 19550 to Ch. 20421.016 & Ch. 20498.516 to Ch. 21296.917
- Elevated Metro track supporting structure for Eco Park Metro station between Ch. 20421.016 to Ch. 20498.516 and
- Multi-Storied Building at Tulsi School Land (at Sitabuldi) of NMRP Phase-2
The accumulated cost of the project stands at Rs. 256,19,87,814. The contracts are expected to be compared within 30 months.
The company holds a market capitalization of Rs. 25,958 crore as of now. After comparing its financial performance on QoQ basis, the revenue for Q4FY23 was Rs. 5,719.83 crore which reduced by 2.59% to Rs. 5,571.57 crore in Q1FY24.
The company’s net profit records a fall of 4.59% from Rs. 359.25 crore in Q4FY23 to Rs. 342.9 crore in Q1FY24. However, its net profit margin has marginally increased by 0.84% to 6.02% in June quarter from 5.97% in March quarter. It has maintained a good average ROE for the last three years of 18.00. Their P/E ratio is at 17.71 against its industry average P/E ratio of 31.58.
Rail Vikas Nigam Limited is a construction company which is 100% owned public sector undertaking of the Ministry of Railways.It was set up by the government for infrastructure and transportation development of the nation. It was also established to raise budgetary resources for an SPE project.
Written by Bhumika Khandelwal
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