The shares of the railway infrastructure developer gained up to 7 percent after the company bagged a prestigious order from Maharashtra Metro Rail Corporation Limited worth Rs 270 crore.
With a market capitalization of Rs 1.03 lakh crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 494.25 per share, increasing around 3.08 percent as compared to the previous closing price of Rs 479.50 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Rail Vikas Nigam Ltd bagged a prestigious order from Maharashtra Metro Rail Corporation Limited worth Rs 270 crore. The project involves the construction of 10 elevated metro stations. This order should be executed within 30 months from the date of the contract.
Financial performance:-
Examine the company’s financial condition, revenue narrowed down by 25 percent from Rs 5,446 crore in Q1FY24 to Rs 4,064 crore in Q1FY25, and during the same time frame, net profit plummeted by 35 percent from Rs 334 crore to Rs 218 crore.
The company’s turnover rose significantly from Rs 2,492 crores in FY13-14 to Rs 21,732 crores in FY23-24, with the bottom line increasing from Rs 157 crores to Rs 1,463 crores. Project expenditure grew from Rs 15,600 crores to IRs 1,55,000 crores, focusing on 15.38% bottom line growth.
Order book & Future plan:-
As of March 31, 2024, Rail Vikas Nigam Limited (RVNL) has a remarkable order book of over Rs 85,000 crores, with a concentration on railway, metro, and international projects. This large order book, which is almost four times the trailing twelve-month sales, guarantees great future revenue visibility.
Despite a flat revenue estimate for FY25, RVNL expects an 8% YoY revenue rise, with a target of Rs 17,700 crores in the coming quarters. Recent project wins, including orders from Central Railway and Maharashtra Metro Rail Corporation, bolster RVNL’s development potential and execution ability.
Business Development:-
The company participated in 142 bids in FY23-24, totaling 286 submissions, with a success rate exceeding 20%. Bids were submitted in international markets, including Bangladesh, UAE, and Saudi Arabia. The company opened offices in South Africa, Oman, UAE, and Maldives, targeting an order book of Rs 75,000 to 1 lakh crores.
Future Guidance:-
The company anticipates an order inflow of INR 20,000 to INR 25,000 crores in FY24-25, aiming to keep the order book at three to four times its annual turnover. It is transitioning from nomination-based to bidding projects, focusing on maintaining a strong order book for future growth.
Projects and Opportunities:-
The company is executing projects like the ABS provision at Jolarpatti Road Junction and focusing on capacity augmentation due to rising traffic projections. It is looking for opportunities in the India Middle East Economic Corridor (IMEEC) project while noting limited focus on railway electrification, having completed over 95% in India.
Multibagger Return:-
The stock has given a multi-bagger return of 90.42 percent in just six months and 190.52 percent in a year. If an investor invested Rs 1 lakh a year ago, it would now be worth Rs 2.90 lakh.
Company profile:-
Rail Vikas Nigam Limited (RVNL) is an India-based company that is engaged in the development of rail infrastructure. The Company is in the business of implementing various types of rail infrastructure projects, gauge conversion, new lines, railway electrification, bridges, workshops, and production units.
Written by:- Abhishek Singh
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