The shares of the rail infrastructure developer gained up to 3 percent after the company emerged as the lowest bidder (L1) from Southern Railway for the project worth Rs 239.09 crore.
With a market capitalization of Rs 59,808.80 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 286.80 per share, increasing around 1 percent as compared to the previous closing price of Rs 284.45 apiece.
According to the company filing, Rail Vikas Nigam Ltd has emerged as the Lowest Bidder (L1) from Southern Railway for the Provision of Automatic Block Signaling system in Jolarpettai Junction to Erode Junction of Salem Division in Southern Railway. The project is worth Rs 239.09 crore.
Looking into Rail Vikas Nigam Ltd’s performance, revenue decreased by 6 percent from Rs 5,012 Crore in Q3FY23 to Rs 4,689 Crore in Q3FY24. During the same time frame, net profit decreased by 6 percent from Rs 382 crore to Rs 359 crore.
The stock has delivered returns of 89.58 percent in the last six months and a multi-bagger return of 173.95 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.73 lakh in a year.
Rail Vikas Nigam has reached a historic milestone, with its order book of Rs. 65,000 crores. This huge order book is evenly split between railway and market-driven projects, with 50 percent coming from each. The business also plans to boost its order book to Rs 75,000 crore in the following year.
The business previously declared its successful proposal as the Lowest Bidder (L1) for the Engineering, Procurement, and Construction (EPC) tender given by South Central Railway.
In accordance with the Aurangabad-Ankai Doubling Project, the lines between the Ankai and Karanjgaon stations will be doubled, including electrification and signaling work. RVNL is entrusted with finishing the project, worth over Rs. 440 crores, within 30 months.
Furthermore, the corporation aims for a turnover of Rs 20,000 crores – 22,000 crores through bottom-line growth initiatives. Furthermore, the PSU corporation aims to align the local infrastructure with global standards, focusing primarily on railway, metro, and other parts.
Rail Vikas Nigam Ltd is in the business of implementing various types of rail infrastructure projects assigned by the MoR, such as doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, production units, and freight revenue sharing with railways, by the concession agreement entered into with the Ministry of Railways.
Written by:- Abhishek Singh
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