Rs 65,000 crore order book: This multibagger railway infra company emerges as the lowest bidder (L1) for orders worth Rs 678,05,61,753 from Southern Railway

The stock gave multibagger returns of 187 per cent in just 1 year and a whopping 800 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL), along with its joint venture partner KRDCL, has emerged as the lowest bidder for orders totalling Rs 678,05,61,753 from Southern Railway.

The larger project is the redevelopment of Thiruvananthapuram Central Railway Station on Engineering, Procurement and Construction (EPC) mode for a total cost of Rs 438,95,66,137 (including GST) to be completed within 42 months. The other project involves providing an automatic block signalling system between Jolarpettai Junction and Erode Junction and will be executed for Rs 2,39,09,95,616 within 900 days.

On Friday, shares of Rail Vikas Nigam Ltd (RVNL) gained 2.68 per cent to an intraday high of Rs 294.75 per share from its previous closing of Rs 287.05. The stock’s 52-week high is Rs 345.60 and its 52-week low is Rs 100.25.   

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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 20.30 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33 per cent. As of December 31, 2023, RVNL has a strong order book of over Rs 65,000 crores, focusing on railway, metro, and overseas projects.

The company has a market cap of over Rs 60,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 18 per cent. The stock gave multibagger returns of 187 per cent in just 1 year and a whopping 800 per cent in 3 years. Investors should keep an eye on this railway infrastructure stock.

Disclaimer: The article is for informational purposes only and not investment advice.