Rs 1,00,000 Crore Order Book: Railway Infrastructure Company Signed MoU with Texmaco Rail & Engineering Ltd
The stock gave multibagger returns of 260 per cent in just 2 years and a whopping 2,324 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) has formalised a strategic partnership with Texmaco Rail & Engineering Limited through a newly signed Memorandum of Understanding (MoU). This agreement is designed to create a collaborative framework focusing on areas of mutual interest within the railway infrastructure and allied sectors. The collaboration will encompass crucial aspects of the railway industry, including the manufacture and maintenance of rolling stock, as well as their subsequent operation and maintenance within workshops.
Beyond these immediate areas, the MoU outlines several forward-looking initiatives and strategic collaborations. These include the establishment and operation of facilities for manufacturing wheel sets and bogies, and the production of Metro Coaches and trainsets within India. The partnership also extends to the execution of Engineering, Procurement, and Construction (EPC) and allied infrastructure projects. Furthermore, both entities will work together on technology and innovation, exploring advancements in automation, digitalisation, sustainable solutions, artificial intelligence, data analytics, and green technologies, all relevant to the modernisation of railway infrastructure, manufacturing processes, operations, and maintenance.
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About the Company
Rail Vikas Nigam Ltd, a Navratna company, was established in 2003 by the Government of India for various rail infrastructure projects. The company has delivered good profit growth of 21 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33.4 per cent. As of March 31, 2024, RVNL has a strong order book of Rs 1,00,000 crore, focusing on railway, metro and overseas projects.
According to Quarterly Results, the net sales decreased by 4 per cent to Rs 6,4276 crore and net profit declined by 4 per cent to Rs 459 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales decreased by 9 per cent to Rs 19,923 crore and net profit increased by 19 per cent to Rs 1,282 crore in FY25 compared to FY24. The company has a market cap of over Rs 85,000 crore and the shares of the company have an ROE of 14 per cent and an ROCE of 15 per cent. The Board has recommended a final dividend of Rs 1.72 per share (i.e. 17.20 per cent) on the paid-up equity share of face value of Rs 10 each of the company for the financial year 2024-25.
As of March 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.84 per cent stake. The stock gave multibagger returns of 260 per cent in just 2 years and a whopping 2,324 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.