The shares of this largecap company jumped around 1 percent in Friday’s trading session after entering into an MoU with a Navratna company to explore global business opportunities. The stock has delivered more than 100 percent return to its shareholders in just six months.
Price Movement:
With a market capitalization of Rs. 1,09,735 crores, the shares of Rail Vikas Nigam Ltd started Friday’s trading session on a flatter note at Rs. 523.70 compared to its previous close of Rs. 521.85.
During the trading session, the shares hit a high of Rs. 528.45, gaining around 1 percent and are currently trading at Rs. 526 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it signed a Memorandum of Understanding (MoU) with Engineers India Limited (EIL), a Navratna company as part of its commitment to enhancing infrastructure collaboration.
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The MoU aims to facilitate cooperation in identifying projects, sharing relevant information to align market needs with each party’s capabilities, and establishing a working relationship focused on specific industry requirements.
Additionally, it seeks to develop business proposals, particularly in Engineering Procurement Construction (EPC) opportunities arising from government, semi-government, autonomous bodies, private entities, and multilateral funding agencies worldwide.
Financials:
Looking at the company’s financial performance, the revenue decreased by 39 percent from Rs. 6,714 crores during the March quarter to Rs. 4,074 crores in the June quarter. On the other hand, the net profits declined by 53 percent from Rs. 478 crores to Rs. 224 crores during the same period.
Shareholding Pattern:
According to the latest shareholding, Domestic Institutional Investors increased their stake from 6.18 percent in the March quarter to 6.77 percent in the June quarter. Among them, LIC raised its stake from 6 percent to 6.44 percent during the same period.
Moreover, Foreign Institutional Investors boosted their stake from 2.32 percent in Q4 FY24 to 3.13 percent in Q1 FY25. Additionally, the Government holds a 72.84 percent stake, while the remaining 17.25 percent is held by the public.
Order Book:
RVNL’s current order book stands at Rs. 83,221 crores, with a management target ranging from Rs. 75,000 crores to Rs. 1 lakh crores. In FY23-24, the company completed 12 projects, increasing its total to 152, and achieved a record by commissioning 243 kilometers of railway projects in March 2024.
During the same fiscal year, RVNL participated in 142 bids and expanded its international presence with submissions in Bangladesh, Sri Lanka, and the UAE.
For FY24-25, the company anticipates an order inflow between Rs. 20,000 and Rs. 25,000 crores, aiming to keep the order book at three to four times its annual turnover.
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.
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Written By Vaibhav Patil
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