Rail Vikas Nigam Ltd Stocks Soared Over 400% in a Year

Rail Vikas Nigam Limited (RVNL) has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 33.95 on September 15, 2022, to Rs 169.15 on September 15, 2023, an increase of more than 400% in one one-year holding period. 

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 5 lakh today. 

In the recent quarter, Q1FY24, Rail Vikas Nigam Limited’s revenue for the first quarter of fiscal year 2024 increased by 20.06% year-over-year (YoY) to Rs 5571.57 crore. The company’s operating profit and profit after tax (PAT) grew by 21.68% YoY and 20.01% YoY, respectively, to Rs 630.71 crore and Rs 335.45 crore. The company has an order book of Rs 65,000 crore. 

Earlier, on September 13, 2023, Rail Vikas Nigam Limited and its JV MPCC emerged as the lowest Bidder (L1) for the civil engineering works construction of station buildings, platform, subways cover over platforms, staff quarters, and passenger amenities, with gauge conversion work between Nadiad- Petlad of Vadodara Division of Western Railway. The order is worth Rs 245.71 crore with an RVNL Share of 74% and MPCC Share of 26%. 

Rail Vikas Nigam Limited is engaged in the business of implementing various types of Rail infrastructure projects including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered into with Ministry of Railway. 

Today, the stock opened at Rs 172.75, with a high and low of Rs 172.75 and Rs 168.20 respectively. The stock is currently trading at Rs 169.55, down by 0.82%. The stock has a 52-week high of Rs 199.35 and a 52-week low of Rs 32.80. The company has a ROCE of 17.8% and an ROE of 20.8% with a market capitalisation of Rs 35,331 crore. 

The stock has shown impressive growth and investors should keep a close eye on this stock. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.