Rs 97,000 crore order book: Multibagger railway stock jumps 11.11 per cent after bagging Rs 115,79,37,241.11 order from Central Railway
The stock gave multibagger returns of 250 per cent in just 2 years and a whopping 2,300 per cent in 5 years.
On Friday, Rail Vikas Nigam Ltd (RVNL) shares jumped 11.11 per cent to Rs 417.70 per share from its previous closing of Rs 375.90 per share. The stock’s 52-week high is Rs 647 per share while its 52-week low is Rs 275.90 per share. The shares of the company saw a spurt in volume by more than 3 times.
Rail Vikas Nigam Limited (RVNL) has secured a significant domestic contract from Central Railway for "OHE Modification Work for Up-gradation of existing 1x25 KV Electric Traction System to 2x25 KV at Feeding System in Itarsi - Amla Section in Nagpur Division." This project, valued at Rs 1,15,79,37,241.11, is aimed at enhancing the railway's capacity to meet a 3000 MT loading target and is to be executed within 24 months. The order, received in the normal course of business, signifies RVNL's continued role in modernising India's railway infrastructure.
Additionally, Rail Vikas Nigam Ltd (RVNL) has announced that a Board of Directors meeting will be held on Wednesday, May 21, 2025, to consider and approve the audited financial results (standalone and consolidated) for the quarter and year ending March 31st, 2025, following a review by the Audit Committee. Consequently, as per RVNL's code of conduct for regulating trading by designated persons and their immediate relatives, the Trading Window Closure Period has been in effect since April 1st, 2025, and will continue until 48 hours after the declaration of the financial results, concluding on Friday, May 23rd, 2025 (inclusive of both dates).
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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 December 31, 2024, RVNL has a strong order book of Rs 97,000 crore, focusing on railway, metro and overseas projects.
According to Quarterly Results, the net sales decreased by 2 per cent to Rs 4,591 crore and net profit declined by 10 per cent to Rs 295 crore in Q3FY25 compared to Q3FY24. In its annual results, the net sales increased by 8 per cent to Rs 21,889.23 crore and net sales increased by 16.5 per cent to Rs 1,469.53 crore in FY24 compared to FY23. The company has a market cap of over Rs 87,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.
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 250 per cent in just 2 years and a whopping 2,300 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.