The shares of the railway company jumped 7 percent after the company received a ‘AAA’ rating from CARE. In the past six months, the company’s stock has delivered more than 35 percent to its stakeholders.
With a market capitalization of Rs. 33,037 crores, Rail Vikas Nigam Ltd (RVNL) shares opened Friday’s trading session positively at Rs. 158.75. The shares hit a high of Rs. 168 making a gain of around 7 percent and currently trading at Rs. 163.90 apiece.
In an exchange filing, the company mentioned that the company received a AAA rating for long-term and short-term facilities worth Rs. 3,500 crores. Short-term loans cater to the working capital requirements or operational needs of businesses. On the other hand, Long-term loans can be used by businesses to finance asset purchases or business expansion or to adopt a growth strategy.
Digging into the financials of the company, the revenue declined by around 12 percent from Rs. 5,571 crores in the June quarter to Rs. 4,914.32 crores in the September quarter. On a contrasting note, the net profit increased by 15 percent from Rs. 342.9 crores to 394.26 crores during the same period.
Looking at the important financial ratios, the return on equity (RoE) increased from 18.56 percent in FY21-22 to 20.81 percent in FY22-23. In addition, the return on capital employed (RoCE) improved from 16.27 percent to 17.83 percent during the same timeframe.
The company’s stock has delivered multibagger returns of 145 percent to its stakeholders on a YTD basis. For example, if someone had invested Rs. 1 lakh since January, then, the worth of those shares would be Rs. 2.45 lakhs now
According to the latest shareholding pattern, the sole Promoter, i.e., the President of India, holds a 72.84 percent stake in the company, Retail Investors have 19.02 percent holdings, DIIs have 5.81 percent shares, and the remaining 2.33 percent is with the FIIs.
Headquartered in New Delhi, Rail Vikas Nigam Limited (RVNL) is an Indian central public sector enterprise that works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. The organization undertakes project execution from concept to commissioning and creates project-specific SPVs.
Written By Vaibhav Patil
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