The shares of the railway infrastructure company gained up to 2.3 percent after the company signed a memorandum of understanding to establish a manufacturing base in Malaysia.
Rail Vikas Nigam Ltd has a market capitalization of Rs 1.18 lakh crore, the shares were trading at Rs 569.40 per share, increasing around 1 percent as compared to the previous closing price of Rs 563.75 apiece.
Reason for Rise:-
Today, the company shares have seen bullish movement after Rail Vikas Nigam Ltd signed an MoU with Dhaya Maju Infrastructure (Asia) Sdn Berhad (DMIA) to work jointly on railway infrastructure and services projects in the association of Southeast Asian Nations (ASEAN) market and other regions, the company is also focusing on establishing a manufacturing base in Malaysia for railway coaches and other railway products for catering to the growing need of ASEAN countries
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.
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.
Multibagger Return:-
The stock has given a multi-bagger return of 118 percent in just six months and 357.65 percent in a year. If an investor invested Rs 1 lakh a year ago, it would now be worth Rs 4.57 lakh.
Company Snapshot:-
Rail Vikas Nigam Limited (RVNL) is an Indian business that develops railway infrastructure. The company works on a variety of rail infrastructure projects, including gauge conversion, new lines, railway electrification, bridges, workshops, and production units.
Written by:- Abhishek Singh
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