Shares of this railway company jumped around 5 percent in Monday’s trading session after receiving four orders worth Rs. 2,093 crores. The shares have delivered a multibagger return of 288 percent to its shareholders in one year.
With a market capitalization of Rs. 51,781 crores, the shares of Rail Vikas Nigam Ltd started Monday’s trading session on a higher note at Rs. 252.30 compared to its previous close of Rs. 237.95.
During the trading session, the shares hit a high of Rs. 258, gaining around 5 percent and are currently trading at Rs. 247 apiece.
Such a bullish movement in the share price was observed after the company received multiple orders worth Rs. 2,093 crores. On March 7th, the company received a LoA from Madhya Pradesh PoorvKshetra Vidyut Vitaran Company Ltd. Jabalpur.
The company received order for supply, installation, testing and commissioning of 11 KV Line associated works such as 11 KV Line Bifurcation, 11 KV line Interconnection, 11 KV Line conductor Augmentation, LT AB cabling augmentation and conversion of LT Bare conductor to AB cabling under Revamped Reforms-based and Results-linked, Distribution sector (Package-11) in Jabalpur (City), Jabalpur (O&M), Katni, Mandla, Dindori, Seoni, Chhindwara, Narsinghpur, Balaghat, Shahdol, Anuppur and Umariya Circles of MPPKVVCL, Jabalpur company area. The order is worth Rs. 251 crore and is to be executed in 24 months.
In addition, the company received the letter of award (LoA) from the Himachal Pradesh State Electricity Board for the development of distribution infrastructure at the North Zone of the state under the revamped reforms-based and results-linked distribution sector scheme (loss reduction works) and the total cost of the project is pegged at Rs 409.65 crore and it has to be completed in 24 months.
Furthermore, the company also received a similar order for the south zone of Himachal Pradesh amounting to Rs. 888.56 crores and to be executed in 24 months.
In another exchange filing, on March 9, the company in a joint venture (JV) with URC received a Letter of Acceptance (LoA) worth Rs. 543 crores from Madhya Pradesh Metro Rail Corporation Limited (MPMRCL).
The railway company received the project for part design and construction of an elevated viaduct, 5 elevated Metro Rail Stations (viz. Shaheed Bagh, Khajrana Chauraha, Bengali Chauraha, Patrakar Colony & Palasia Chauraha) and Ramp between Chainages 31+755 to 34+898.061 and 3+669.547 to 5+862 for Indore Metro
Rail Project, to be completed in 1,092 days. RVNL holds a majority share of 51 percent of the project’s revenue.
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.
Written By Vaibhav Patil
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