During Thursday’s trading session, the shares of this Navratna railway stocks engaged in rail infrastructure development and specialising in diverse railway projects are in focus after securing an order worth nearly Rs. 110.8 crores from Southern Railway.
With a market cap of Rs. 97,881.3 crores, the shares of Rail Vikas Nigam Limited opened in the green at Rs. 475.75, up by around 0.3 percent, as against its previous closing price of Rs. 474.2.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Rail Vikas Nigam Limited (RVNL) received a Letter of Acceptance (LoA) worth around Rs. 110.86 crores from Southern Railway, to be executed within 18 months.
The order is for the provision of MSDAC with existing DCTC at Stations (to serve as Dual detection) and replacing balance AFTCs in MAS- GDR & MSB-TBM automatic block signalling sections of Chennai Division in Southern Railway.
Previous News:
On 29th November, RVNL emerged as the Lowest Bidder (L1) from PSPCL for the development of distribution Infrastructure work for Package-3 Central Zone for the execution of HT/LT Infrastructure loss reduction works under reforms-based and results-linked, revamped distribution sector scheme (RDSS) in Punjab. The cost of the project stood at ~Rs. 642.56 crores.
On 3rd December, the company received a LoA worth ~Rs. 186.76 crores from East Central Railway for the design, supply, erection, testing & commissioning of Traction Sub Stations with associated Switching Posts for the upgradation work of the electric traction system from 1X25 to 2X25 KV AT feeding system in Gomoh-Patratu Section of Dhanbad Division.
Financials:
RVNL reported a marginal decline in revenue from operations, experiencing a year-on-year fall of nearly 1.2 percent, from Rs. 4,914 crores in Q2 FY24 to Rs. 4,855 crores in Q2 FY25.
Similarly, its net profit decreased during the same period from Rs. 394 crores to Rs. 287 crores, representing a decline of nearly 27 percent YoY.
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Order Book:
As of Q1 FY25, RVNL’s order book stood at over Rs. 83,000 crores. In recent weeks, the company has secured additional orders worth over Rs. 7,000 crores, bringing the total order value to more than Rs. 90,000 crores.
During FY23-24, RVNL participated in 142 bids totalling Rs. 65,000 crore. The company achieved a success rate of 23.24 percent in civil engineering projects, 35.78 percent in electrical projects, and 14.27 percent in signalling and telecommunication (S&T) projects.
For FY25, the company plans to bid on over 150 projects worth Rs. 75,000 crore. The company’s strategy focuses on maintaining an order book that is 3-4 times its annual turnover.
Stock Performance:
The stock has delivered multibagger returns of nearly 164 percent in one year, while around 20 percent of positive returns in the last six months. So far in 2024, the shares of RVNL have given multibagger returns of about 158 percent.
About the company:
Incorporated in 2003, Rail Vikas Nigam Limited works as the construction arm of the Ministry of Railways (MoR) for project implementation and transportation infrastructure development.
The company is engaged in executing various railway projects, including new lines, doubling, gauge conversion, railway electrification, workshops, metro projects, bridges, construction of cable-stayed bridges, and institution buildings.
Written by Shivani Singh
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