The shares of the public sector company gained up to 3 percent after the company’s joint venture received a letter of acceptance from Southern Railway worth Rs 156.47 crore.
Rail Vikas Nigam Ltd has a market capitalization of Rs 86,549.18 crore, the shares were trading in green at Rs 415.25 per share, increasing around 1.44 percent as compared to the previous closing price of Rs 409.05 apiece.
Matter Explanation:-
Today the company shares have seen a positive movement after Rail Vikas Nigam Ltd joint venture company KRDCL-RVNL received a letter of acceptance from Southern Railway worth Rs 156.47 crore for the Provision of Automatic Signalling on Ernakulam JN (ERS) Vallattol Nagar (VTK) Section on B-Route of Thiruvananthapuram Division in Southern Railway.
Financial Health:-
Examining the company’s financial performance, revenue soared by 17 percent from Rs 5,721 crore in Q4FY23 to Rs 6,701 crore in Q4FY24, during the same time frame, the company’s net profit jumped notably by 25 percent from Rs 345 crore to Rs 433 crore.
Future Outlook and Order book:-
Rail Vikas Nigam Ltd (RVNL) aims to significantly expand its order book to Rs 75,000-1,00,000 crore in the next year, up from Rs 57,000 crore in March 2023. This growth reflects RVNL’s ambitious strategy to secure more substantial and diverse projects.
Diversification is key to RVNL’s strategy, with plans to venture beyond railway infrastructure into metro, tunnels, mega bridges, and international projects. Notably, the company is entering high-margin consultancy services and has already secured contracts in this sector.
RVNL is also eyeing global expansion, particularly in Africa and neighboring countries, and has begun a project in the Maldives. Additionally, RVNL’s entry into manufacturing, starting with 120 Vande Bharat sleeper train sets, along with technological upgrades and organizational restructuring, underscores its comprehensive growth and efficiency enhancement efforts.
Return:-
The stock has given a multi-bagger return of 133.41 percent in just six months and 235.07 percent in a year. If an individual invested Rs 1 lakh a year ago, it would now be worth Rs 3.35 lakh.
Company Snapshot:-
Rail Vikas Nigam Limited (RVNL) is an Indian company that creates rail infrastructure. The firm works on a wide range of rail infrastructure projects, including gauge conversion, new lines, railway electrification, bridges, workshops, and production units.
Written by:- Abhishek Singh
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