This Navratna PSU Stocks engaged in railway infrastructure projects encompassing track doubling, gauge conversion, new lines, railway electrification, major bridges, and workshops. The company has won an EPC contract from South Central Railway valued at Rs. 294.95 crore for a track doubling project.
Stock Movements:
With a market capitalization of Rs. 86,736.84 crore, the shares of Rail Vikas Nigam Limited were closed at Rs. 416 per equity share, down nearly around 0.91 percent from its previous day’s close price of Rs. 419.80.
What Happened:
Rail Vikas Nigam Limited (RVNL) has secured an order from South Central Railway for an Engineering Procurement Construction (EPC) Contract for track doubling between Navipet and Indalvai stations, covering 33.70 km (excluding 2.3 km of Nizamabad Yard). The project, part of the Mudkhed-Medchal Doubling Project in Telangana, includes comprehensive electrification and signaling works. The cost of the projects will be Rs. 294.95 crore and the work within 24 months.
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Order Book:
As of Q1 FY25, Rail Vikas Nigam Limited’s order book exceeds Rs. 83,000 crore. Recent weeks have brought additional orders surpassing Rs. 7,000 crore, elevating their total order holdings beyond Rs. 90,000 crore.
The company targets maintaining an order book between Rs. 75,000-100,000 crore. Through bidding, they anticipate annual order inflows of Rs. 20,000-25,000 crore. For FY24-25, RVNL plans to bid on more than 150 projects valued at Rs. 75,000 crores. Their strategic approach maintains an order book at 3-4 times their annual turnover.
Recent quarter results and ratios:
Rail Vikas Nigam Limited’s revenue from operations has decreased by 1.21 percent YOY, from Rs. 4,914.32 crore in Q2 FY24 to Rs. 4,854.95 crore in Q2 FY25. The net profit of Rail Vikas Nigam Limited has decreased by 27.26 percent YOY, from Rs. 394.42 crore in Q2 FY24 to Rs. 286.89 crore in Q2 FY25
Rail Vikas Nigam Limited’s revenue and net profit have grown at a CAGR of 16.66 percent and 19.24 percent, respectively, over the last five years.
In terms of ratio, Rail Vikas Nigam Limited’s ROE and ROCE are 20.4% and 18.7%, respectively. The debt-to-equity ratio of Rail Vikas Nigam Limited is 0.77x, and EPS will be Rs. 6.14.
Company Profile
Rail Vikas Nigam Limited (RVNL), a state-owned enterprise, specializes in modernizing India’s railway infrastructure. Their core activities encompass new railway line construction, track gauge conversion, and comprehensive electrification initiatives. Additionally, they develop vital infrastructure including bridges, workshops, and urban metro networks nationwide.
RVNL operates an end-to-end project management approach, overseeing everything from initial planning and financial allocation to final implementation. Through collaboration with government bodies and public sector entities, they execute critical infrastructure projects. Their technical expertise and innovative solutions contribute significantly to India’s railway sector development, facilitating efficient movement of both passengers and freight across the country.
Written By – Nikhil Naik
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