The shares of the public sector enterprises gained up to 4 percent after the company received two new work orders from Central Railway and Bangalore Metro Rail Corporation Ltd, respectively, worth Rs 532 crores.
Rail Vikas Nigam Ltd has a market capitalization of Rs 80,054.35 crore, the shares were trading in positive at Rs 383.80 per share, increasing around 2.68 percent as compared to the previous closing price of Rs 373.80 apiece.
This PSU stock has seen a positive movement after Rail Vikas Nigam Ltd received two new work orders from Central Railway and Bangalore Metro Rail Corporation Ltd, respectively, worth Rs 532 crores.
The first order received from Bangalore Metro Rail Corporation Ltd for engineering, supply, erection, testing, and commissioning of 33 KV distribution, 750V DC third Rail Traction Electrification including Traction Substations, Auxiliary Substations, and SCADA System for Phase-2A & Phase 2 B valued at Rs 394.23 crore.
Furthermore, the second order received from Central Railway for OHE modification work for the Up-gradation of the existing 1 x 25 kV Electric Traction System to 2 x 25 kV AT Feeding System in the Amla-Nagpur Section in the Nagpur division of Central Railway to meet 3000 MT loading target, the contract valued at Rs 138.45 crore.
Examining the company’s financial performance, revenue surged 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 surged notably by 25 percent from Rs 345 crore to Rs 433 crore.
The company has a total order book of Rs 65,000 crore, with 50% coming from railway projects and 50% from markets. RVNL aims to maintain an order book of around Rs 75000 crore in the future.
In 2024, RVNL received 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 obtained orders for Gujarat Metro and Vande Bharat Train sets.
The stock has given a multi-bagger return of 114 percent in just six months and 208 percent in a year. If an investor invested Rs 1 lakh a year ago, it would now be worth Rs 3.08 lakh.
Rail Vikas Nigam Limited (RVNL) is an India-based firm that develops rail infrastructure. The company works on a variety of rail infrastructure projects, including gauge conversion, new lines, railway electrification, bridges, workshops, and production units.
Written by:- Abhishek Singh
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