Shares of this Navratna company fell around 1 percent in Friday’s trading session despite winning the Indian Railway project worth over Rs. 440 crores. The shares have delivered a multibagger return of 234 percent to its shareholders in one year. 

With a market capitalization of Rs. 53,929 crores, the shares of Rail Vikas Nigam Ltd started Friday’s trading session on a lower note at Rs. 253.65 compared to its previous close of Rs. 259.90. During the trading session, the shares hit a low of Rs. 251.80, losing around 2 percent and closed the day slightly higher at Rs. 258 apiece. 

According to the exchange filing, the company announced its successful bid as the Lowest Bidder (L1) for the Engineering, Procurement, and Construction (EPC) tender issued by South Central Railway. 

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The project entails the doubling of tracks between Ankai and Karanjgaon stations, inclusive of electrification and signalling works, in connection with the Aurangabad-Ankai Doubling Project. Valued at over Rs. 440 crores, RVNL is tasked with completing the project within a timeframe of 30 months. 

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. 

Earlier, the railway company signed an MoU with Turkish Engineering Consulting & Contracting – TUMAS India Private Limited for partnership and collaboration in public transportation projects and infrastructure projects in India. 

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’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY22-23 with the former reported at 19.39 percent and the latter at 15.88 percent. 

Additionally, the company also targets a turnover of Rs 20,000 crores – 22,000 crores with bottom-line growth strategies. In addition, the PSU company looks to transform the local scenario with global infra levels, focusing mainly 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 constructing Rail Infrastructure projects in India. The company undertakes rail project development and implementation projects as well as provides financial resource mobilization services to its customers spanning various Central and State Government Ministries, departments, etc. 

Written By Vaibhav Patil


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