The shares of a company specializing in rail infrastructure construction rose by 2.5% to ₹421 per share on Wednesday after securing a ₹132 crore order from Central Railways.
Rail Vikas Nigam Ltd(RVNL) belongs to the large-cap category of stock with a market capitalization of ₹86,934 crore. At 10:40 a.m., the RVNL shares were trading at ₹416.95, up 1.42 percent from the previous close price.
What News: According to the company’s exchange filing, Rail Vikas Nigam Limited has been selected as the Lowest Bidder (L1) by Central Railway for the “OHE modification work.”
The project involves upgrading the existing 1 x 25 kV Electric Traction System to a 2 x 25 kV AT Feeding System in the Wardha-Ballarshah Section of the Nagpur division. For a contract valued at ₹132.59 crores.
Recently, the Rail Vikas Nigam Limited (RVNL) won a contract worth ₹ 191.53 crore from the South Eastern Railway to handle the design, supply, installation, testing, and commissioning of a 132 KV traction substation and related posts on the Raj Khaswan, Nayagarh-Bolsection to support a 3000MT loading target.
About the company: RVNL is an Indian central public sector enterprise that works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development.
The company executes various railway projects, including new lines, doubling, gauge conversion, railway electrification, workshops, metro projects, bridges, construction of cable-stayed bridges, and institution buildings.
Financials: The company’s revenue has increased 17 percent year on year, from ₹5,721 crore in Q4FY23 to ₹6,701 crore in Q4FY24. During the same period, Net profit has also increased by 26 percent, from ₹345 crore to ₹433 crore.
Stock Returns: Rail Vikas Nigam Ltd shares have gained a return of 124 percent in the last six months and 242 percent in a year. A shareholder investment of ₹ 1 lakh in the company would be worth ₹ 3.42 lakhs in a year.
The company management expects an order inflow of approximately ₹20,000 to ₹25,000 crores in FY24-25 and aims to maintain the order book at three to four times the annual turnover.
Written by Omkar Chitnis
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