The shares of the public sector enterprises gained up to 4 percent after the company emerged as the Lowest Bidder (L1) from East Coast Railway worth Rs 160 crore.
With a market capitalization of Rs 83,192.30 crore, the shares of Rail Vikas Nigam Ltd were trading in positive at Rs 398.80 per share, increasing drastically by 2.18 percent as compared to the previous closing price of Rs 390 apiece.
According to the company filing, Rail Vikas Nigam Ltd emerges as the Lowest Bidder (L1) from East Coast Railway for “Provision of Automatic Block Signaling system with dual MSDAC and alteration in existing El/Pl/RRI stations in the section of Jakhapura-Nergundi, Khurda Road-Bhusundpur & Bhusundpur-Golanthra over Khurda Road Division of East Coast Railway.”
Furthermore, the work order is valued at Rs 160 crore and the time frame to complete this contract within 24 months.
Looking into the company’s financial performance, revenue magnified by 17 percent from Rs 5,721 crore in Q4FY23 to Rs 6,701 crore in Q4FY24, during the same period, the company’s net profit soared notably by 25 percent from Rs 345 crore to Rs 433 crore.
The company’s total order book is Rs 65,000 crore, with 50% coming from railway projects and 50% from markets. RVNL plans to maintain an order book of around Rs 75000 crore in the future.
In 2024, RVNL secured orders for metro projects in Madhya Pradesh and Chennai, railway infrastructure in Western and South Eastern Railways, and distribution infrastructure in Himachal Pradesh. RVNL successfully received orders for Gujarat Metro and Vande Bharat train sets.
The stock has given a multi-bagger return of 118 percent in just six months and 220 percent in a year. If an individual invested Rs 1 lakh a year ago, it would now be worth Rs 3.20 lakh.
Rail Vikas Nigam Limited (RVNL) is an Indian company that creates rail infrastructure. The firm works on a wide range of rail infrastructure projects, including gauge conversion, new lines, railway electrification, bridges, workshops, and production units.
Written by:- Abhishek Singh
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