Shares of this large-cap company surged around 8 percent in Tuesday’s trading session after receiving an order worth Rs. 239 crores from Southern Railway. The shares have delivered a multibagger return of 125 percent in one year to its shareholders.
With a market capitalization of Rs. 56,441 crores, the shares of Rail Vikas Nigam Ltd started Tuesday’s trading session on a higher note at Rs. 260 compared to its previous close of Rs. 255.75. During the trading session, the shares hit a high of Rs. 274.80, gaining around 8 percent and are currently trading at Rs. 274 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a Letter of Acceptance (LoA) from Southern Railway for the provision of an automatic block signalling system in Jolarpettai Junction to Erode Junction of Salem Division in Southern Railway worth over Rs. 239 crores. This marks the railway company’s third order received from Southern Railway in May 2024.
Coming onto 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. Furthermore, the company is set to announce its quarterly results on 15th May 2024.
Recently, the company received a LoA from South Eastern Railway for the design, supply, erection, testing and commissioning for the upgradation of an Electric traction system for the Rajkharsawan NayagarhBolani section of Chakradharpur division of South Eastern Railway to meet the 3,000 MT loading target. The project is worth over Rs. 167 crores.
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. The company aims to increase the order book to Rs 75,000 crore in the coming year.
Additionally, the company’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY22-23 with the former reported at 19.39 percent and the latter at 15.88 percent.
Moreover, the company also targets a turnover of Rs 20,000 crores to 22,000 crores with bottom-line growth strategies. In addition, the PSU company looks to transform the local scenario with global infra levels, focusing mainly 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 constructing Rail Infrastructure projects in India. The company undertakes rail project development and implementation projects as well as provides financial resource mobilization services to its customers spanning various Central and State Government Ministries, departments, etc.
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.
