One of the Navratna railway stocks has engaged in rail infrastructure development and specializes in diverse railway projects. The stock has plunged by 5.47 percent after the weak quarterly results in September 2024, but the company has maintained an order book of more than Rs. 90,000 crore.
Stock Movement
After announcing its quarterly results, Rail Vikas Nigam Limited‘s share has plunged by 5.47 percent from the previous close of Rs. 477.55. The stock opened at Rs. 448.20 and is currently trading at Rs. 451.45, with a high of Rs. 457.40 and a low of Rs. 444. The market capitalization now stands at approximately Rs. 94,232.48 crore.
Reason for Falls
Rail Vikas Nigam Limited’s revenue from operations has decreased by 1.21 percent YOY, from Rs. 4,914.32 crore in Q2 FY24 to Rs. 4,854.95 crore in Q2 FY25, and is up by 19.17 percent QoQ from Rs. 4,073.80 crore in Q1 FY25.
Rail Vikas Nigam Limited’s net profit has decreased by 27.26 percent YOY, from Rs. 394.42 crore in Q2 FY24 to Rs. 286.89 crore in Q2 FY25. As compared to the last quarters, the company’s net profit has increased by 28.12 percent QoQ from Rs. 223.92 crore. The company’s EPS has decreased by 26.98 percent from Rs. 1.89 in Q2 FY24 to Rs. 1.38 in Q2 FY25.
In terms of return ratios, Rail Vikas Nigam Limited’s share ROE and ROCE are currently at 20.4 percent and 18.7 percent, respectively. Rail Vikas Nigam Limited has a debt-to-equity ratio of 0.68x.
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Order Book
As of Q1 FY25, Rail Vikas Nigam Limited has maintained an order book of more than 83,000 crore. In the past few weeks, the company has received orders worth more than 7,000 crore. Now, Rail Vikas Nigam Limited has held orders of more than Rs. 90,000 crore.
The company aims to maintain an order book of Rs. 75,000–100,000 crore. They expect Rs. 20,000-25,000 crore annual order inflow through bidding. Rail Vikas Nigam Limited plans to bid for over 150 projects worth Rs. 75,000 crores in FY24-25. RVNL’s strategy upholds a 3-4x order book compared to annual turnover.
Company Profile
Rail Vikas Nigam Limited (RVNL) is a government company focused on improving India’s railway system. They build new railway lines, convert existing tracks to different gauges, and manage electrification projects. RVNL also constructs bridges, workshops, and metro systems across the country.
The company handles projects from start to finish, including planning, budgeting, and execution. They work with various government departments and public sector organizations to deliver these projects. With their technical skills and innovative approaches, RVNL plays a key role in enhancing the railway infrastructure in India, ensuring efficient transportation for millions of passengers and goods.
Written By – Nikhil Naik
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