Shares of this large-cap company fell around 1 percent in Friday’s trading session despite receiving an order worth over Rs. 38 crores from South East Central Railway. The shares have delivered a multibagger return of 113 percent in one year to its shareholders.
With a market capitalization of Rs. 54,148 crores, the shares of Rail Vikas Nigam Ltd started Friday’s trading session on a flatter note at Rs. 261.05. During the trading session, the shares hit a low of Rs. 251.90, losing around 1 percent and are currently trading at Rs. 259 apiece.
According to the exchange filing, the company announced that it had emerges as the Lowest Bidder (L1) from South East Central Railway. The project is worth over Rs. 38 crores and is to be completed in 15 months.
The scope of work includes the provision of auto signalling with Electronic Interlocking (OFC Based) between Champa-Saragaon-Baraduar-Sakti section with alteration in existing Electronic Interlocking and the supply, installation, testing, commissioning of new Electronic Interlocking, MSDAC & IPS etc., execution of all indoor and outdoor works and construction and Electrification of the huts etc. in Champa-Sakti Section of Bilaspur Division.
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, on 9th May 2024, the railway company received a Letter of Acceptance from South Eastern Railway for the design, supply, erection, testing and commissioning for the upgradation of the Electric traction system of Chakradharpur division of South Eastern Railway to meet the 3,000 MT loading target. The project is worth over Rs. 167 crores.
Furthermore, the company 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.
Additionally, 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.
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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