Shares of this railway company jumped around 4 percent in Thursday’s trading session after receiving an order worth Rs. 167 crores from South Eastern Railway. The shares have delivered a multibagger return of 284 percent to its shareholders in one year.
With a market capitalization of Rs. 51,552 crores, the shares of Rail Vikas Nigam Ltd started Thursday’s trading session on a higher note at Rs. 247 compared to its previous close of Rs. 239.20. During the trading session, the shares hit a high of Rs. 249.40, gaining around 4 percent and are currently trading at Rs. 246 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had emerged as the lowest bidder for a contract from South Eastern Railway. The order is worth around Rs. 167.28 crore and is expected to be completed in 18 months.
The order was received for design, supply, erection, testing and commissioning for the upgradation of the Electric traction system from 1 x 25 KV to 2 x 25 KV traction system for the Rajkharsawan -Nayagarh Bolani section of the Chakradharpur division of the South Eastern Railway to meet the 3000 MT loading target.
Earlier, the PSU company had received multiple orders amounting to Rs. 2,093 crores. Notably, it secured a Letter of Award (LoA) from Madhya Pradesh PoorvKshetra Vidyut Vitaran valued at Rs. 251 crores. Additionally, RVNL, in a joint venture, received a Rs. 543 crores LoA from Madhya Pradesh Metro Rail Corporation. The Himachal Pradesh State Electricity Board awarded two projects collectively worth Rs. 1,298.21 crores in the north and south zones.
Looking at the company’s financial statements, the revenue decreased by 5 percent from Rs. 4,914 crores during the September quarter to Rs. 4,689 crores in the December quarter. On the other hand, the net profits declined by 9 percent from Rs. 394 crores to Rs. 359 crores during the same period.
Rail Vikas Nigam has achieved a significant milestone with its order book reaching Rs. 65,000 crores. This substantial order book is evenly divided between railway projects and market-driven projects, with 50 percent coming from each sector. The company further aims to increase the order book to Rs 75,000 crore in the coming year.
Furthermore, the company is actively pursuing export business in neighbouring countries and regions like Bangladesh, Sri Lanka, Maldives, and Africa and is aiming to transform from local rail infrastructure to global infrastructure, focusing on railway, metro, and other segments.
Headquartered in New Delhi, Rail Vikas Nigam was incorporated in 2003. The company is engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and production units.
Written By Vaibhav Patil
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