Rs 70,000 crore order book and 650 per cent returns: This multibagger railway wagons company emerges as L1 bidder for order worth Rs 543,00,00,000 from Madhya Pradesh Metro Rail Corporation!

The stock gave multibagger returns of 145 per cent in just 1 year and a whopping 750 per cent in 3 years.

Rail Vikas Nigam Ltd (RVNL) and its joint venture partner URC Construction (URC) have secured a prestigious contract for the Madhya Pradesh Metro Rail Corporation. The joint venture, known as RVNL-URC JV, emerged as the lowest bidder for the part design and construction of an elevated viaduct, five elevated metro rail stations, and a ramp project. This contract is valued at Rs 543 crore and will be completed within 1,092 days from the date of receiving the letter of intent.

The project scope includes the design and construction of an elevated viaduct, five elevated metro rail stations (Shaheed Bagh, Khajrana Chauraha, Bengali Chauraha, Patrakar Colony, and Palasia Chauraha), and a ramp. This vital infrastructure development will significantly improve public transportation within the Indore metropolitan area.

RVNL and URC will share the project responsibilities, with RVNL holding a 51 per cent stake and URC holding a 49 per cent stake in the joint venture. This collaboration leverages the expertise of both companies to ensure the successful completion of this critical project.

Earlier, The company received a total of Rs 731,17,81,053.34 in orders from Central and Western Railways. The orders include the construction of tunnels, bridges, track works, station buildings, platforms, subways, staff quarters, passenger amenities, circulating areas, approach roads, offices, service buildings, watering, sanitation, protection works, etc. The orders will be completed within 18 to 24 months from LOA.

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 September 30, 2023, RVNL has a strong order book of over Rs. 70,000 crores, focusing on railway, metro, and overseas projects.

Today, shares of RVNL plunged 0.62 per cent to Rs 176.90 per share from its previous closing of Rs 178 with an intraday high of Rs 179.35 and an intraday low of Rs 175.15.

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 145 per cent in just 1 year and a whopping 750 per cent in 3 years. Investors should keep an eye on this railway stock.

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