Shares of this largecap company jumped around 1 percent in Monday’s trading session after receiving an order worth Rs. 132.59 crores from Central Railway. In just a month the shares have delivered around 60 percent returns to its shareholders.
Price Movemnet:
With a market capitalisation of Rs. 1,31,919 crores, the shares of Rail Vikas Nigam Ltd started Monday’s trading session on a higher note at Rs. 637 compared to its previous close of Rs. 626.75. During the trading session, the shares hit a high of Rs. 647, gaining around 1 percent and also recorded as the company’s fresh 52-week high. The shares are currently trading at Rs. 631 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received a Letter of Acceptance from Central Railway for OHE modification work for the Up-gradation of the existing 1 x 25 kV Electric Traction System to 2 x 25 kV at Feeding System in Wardha-Ballarshah Section in Nagpur division of Central Railway to meet 3000 MT loading target. The project, costing over Rs. 132.59 crores, is scheduled to be finished within 24 months.
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Financials:
Coming onto the company’s financial performance, the revenue surged by 43 percent from Rs. 4,689.33 crores in the December quarter to Rs. 6,714.01 in the March quarter. In addition, the net profits jumped by 33 percent from Rs. 358.57 crores to Rs. 478.4 crores during the same period.
Recent Developments:
Earlier, the PSU company received a Letter of Acceptance from Central Railway for OHE modification work for the Up-gradation of the existing 1 x 25 kV Electric Traction System to a 2 x 25 kV AT Feeding System in the Amla-Nagpur Section in Nagpur division. The project, costing over Rs. 138.45 crores, is scheduled to be finished within 24 months.
The railway PSU also crossed Rs. 1 lakh crores in market capitalisation, becoming only the second railway stock after IRFC to achieve this milestone.
In July alone, the railway company secured orders totalling over Rs. 500 crores. These include contracts from South Eastern Railway valued at Rs. 202.87 crores, Maharashtra Metro Rail Corporation (Nagpur Metro) at Rs. 187.34 crores, and Central Railway at Rs. 132.59 crores.
Moreover, the expectations of a special focus on the railway infrastructure in the Union Budget have helped push the stock higher.
The government is focusing on improving the railway infrastructure and ensuring faster development and completion of tracks, rail electrification, rolling stock manufacturing and delivery of passenger freight services.
Order Book:
Rail Vikas Nigam has achieved a significant milestone with its order book reaching around Rs. 85,000 crores, out of this, Rs. 40,000 crores belongs to the bid portion and Rs. 45,000 crores to the nomination portion.
Company Profile:
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
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