Rs 97,000 Crore Order Book: Railway Infrastructure Company Emerges as Lowest Bidder (L1) for order of Rs 178,64,60,939.78 from IRCON International Ltd
The stock gave multibagger returns of 260 per cent in just 2 years and a whopping 2,300 per cent in 5 years.
Rail Vikas Nigam Limited (RVNL) has emerged as the Lowest Bidder (L1) for a domestic project awarded by IRCON International Limited, involving the supply, installation, testing, and commissioning of various signalling, telecommunications, and EIMWB materials. This includes the implementation of distributed/centralised Electronic Interlocking (EI) installations at ten new stations, six new IBSs across several block sections, a new Section Control System with related communication equipment in the Gevra Road-Pendra Road section, and a new Telephone Exchange and EIMWBs at suitable locations. The project also entails alterations and modifications to existing interlocking installations at the Kusmunda Block Station (KBS) yard and the East Cabin of the SECL SILO Siding (KMKA) yard, with an overall broad consideration of Rs 1,78,64,60,939.78 and a completion timeline of 11 months, inclusive of the monsoon period.
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).
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
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 260 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.