Shares of this large-cap company jumped around 5 percent in Tuesday’s trading session after signing an MoU with the Airports Authority of India. The shares have delivered a multibagger return of 292 percent in one year to its shareholders.
With a market capitalization of Rs. 54,096 crores, the shares of Rail Vikas Nigam Ltd started Tuesday’s trading session on a higher note at Rs. 254 compared to its previous close of Rs. 249.85. During the trading session, the shares hit a high of Rs. 261.65, gaining around 5 percent and are currently trading at Rs. 260 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had signed an MoU with the Airports Authority of India (AAI) for the Construction of a Subway/Underpass to connect the operational area to the Airport Authority of India residential colony in Kolkata. The estimated cost of the project is Rs. 229.43 crores.
Earlier, on March 20, the PSU company had emerged as the lowest bidder for a contract from South Eastern Railway. The order is worth around Rs. 167.28 crore and is expected to be completed in 18 months.
The order was received for design, supply, erection, testing and commissioning for the upgradation of the Electric traction system from 1 x 25 KV to 2 x 25 KV traction system for the Rajkharsawan -Nayagarh- Bolani section of the Chakradharpur division of the South Eastern Railway to meet the 3000 MT loading target.
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.
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.
Moreover, the railway company has set an ambitious goal to maintain an order book three to four times the turnover and expects new orders of Rs. 25,000 crores annually.
Furthermore, the company is actively pursuing export business in neighbouring countries and regions like Bangladesh, Sri Lanka, Maldives, and Africa and is aiming to transform from local rail infrastructure to global infrastructure, focusing 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 implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and production units.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
