Shares of this multibagger rail stock jumped around 2 percent in Wednesday’s trading session after a Joint Venture (JV) company received a letter of acceptance (LoA) worth Rs 123.36 crores.
With a market capitalization of Rs 38,395.65 crores, the stocks of Rail Vikas Nigam Limited (RVNL) started their trading session on Wednesday at Rs 182.55 and currently trade at Rs 184.15, gaining close to 2 percent compared to the previous closing levels of Rs 180.80 apiece.
Such bullish stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that “M/s KRDCL-RVNL”, a JV company between KRDCL and RVNL, received an order with a total cost of Rs 123.36 crores. The period for executing the order is fixed as 30 months.
The JV received the order for the purpose of major upgradation/redevelopment of the “Varkala Sivagiri” Railway Station. RVNL represents a share of 49 percent in the JV company thereby making a share of Rs 60.44 crores as far as the above order is concerned.
Keeping a purview of one year, the company’s stock delivered multibagger returns of approximately 158 percent, viz, if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.58 lakhs.
During the recent financial quarters, the company’s basic business indicators such as operating revenues and after-tax profits showcased movements in opposing directions.
The former, on one end, reduced from Rs 5,571.57 crores during Q1FY23-24 to Rs 4,914.32 crores during Q2FY23-24 and, the latter, keeping the horizon the same, moved up from Rs 335.45 crores to Rs 370.21 crores due to reduction in operating expenses.
As per the latest presentations, the rail company has received total orders worth over Rs 32,000 crores & commissioned over 140 projects for the Ministry of Railways. In addition, the company has invested in JVs and SPVs for various projects.
Incorporated in 2003, Rail Vikas Nigam Limited is involved in the business of constructing rail infrastructure projects in India. The company executes various railway projects, including new lines, railway electrification, doubling, metro projects, bridges, etc. It serves Indian Railways, and various other state and central government ministries.
Written by Amit Madnani
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