Rs 65,000 crore order book: This multibagger railway infrastructure company forms a JV with Salasar Techno Engineering Ltd and emerges as the lowest bidder (L1) for an order worth Rs 173,99,04,310

The stock gave multibagger returns of 320 per cent in just 1 year and a whopping 770 per cent in 3 years.

Today, the stock market was in the red with the BSE Sensex Index down 0.39 per cent at a level of 72,337. On the broader front, the indices were in green with the BSE Mid-Cap Index up by 0.12 per cent and the BSE Small-Cap Index up 0.12 per cent.

As the market was trading mixed, one multibagger railway infrastructure stock gained 0.81 per cent to Rs 262.65 per share from its previous closing of Rs 260.55. The stock’s 52-week high is Rs 345.60 and its 52-week low is Rs 56.15.  

The stock name is Rail Vikas Nigam Ltd (RVNL).

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 emerges as the lowest bidder (L1) from Madhya Pradesh Power Transmission Company Limited (MPPTCL) for the construction of 132kV and 220kV transmission lines and associated feeder bays on a total turnkey basis in Eastern MP. The order is in a JV partnership wherein RVNL's share is 51 per cent and Salasar Techno Engineering Ltd.’s share is 49 per cent. The order is worth Rs 173,99,04,310 and will be completed within 18 months.

Earlier, RVNL emerges as the lowest bidder (L1) from Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Ltd (MPPKWCL) for upgrading electricity infrastructure in Jhabua with new 11KV lines, substation, transformers, and cables. This project is part of a broader initiative to improve power distribution. The order is worth Rs 106,37,12,145 and will be completed within 24 months from the letter of intent (LOI).

The company has a market cap of Rs 54,000 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 320 per cent in just 1 year and a whopping 770 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. 

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