Railway Infra Giant Scores Big! ₹446 Crore in New Orders from Ministry of Railways

Rail Vikas Nigam Ltd (RVNL), established by the Government of India in 2003, is a significant player in rail infrastructure. With a 20.30% CAGR profit growth over 5 years and a 33% dividend payout, RVNL has a robust financial standing. As of March 31, 2023, its order book exceeds Rs 85,000 crores, focusing on railway, metro, and overseas projects.

Recent Contracts: RVNL secured a contract from South Eastern Railway (SER) to upgrade the electric traction system, aiming to enhance efficiency and freight load capacity. The project, valued at Rs 148.27 crore, is expected to conclude in 18 months.

Another contract by South East Central Railway (SECR) involves upgrading the railway signalling system on the Champa-Saragaon-Baraduar-Sakti section. Valued at Rs 38.10 crore, it needs to be completed within 15 months.

RVNL secured a contract from Maharashtra Metro Rail Corporation Limited (Nagpur Metro) to construct six elevated metro stations in Nagpur. The project, valued at Rs 187.34 crore, spans over 30 months.

Another contract from North Central Railway involves upgrading the signalling system along the Dhaulpur-Gwalior section, valued at Rs 72.74 crore and to be completed within 455 days.

RVNL's net sales increased by 17.4% in Q4FY24 and by 8% annually in FY24. The Board recommended a final dividend of Rs 2.11 per share for FY23-24.

In March 2024, the President of India's portfolio reduced their stake in RVNL to 72.84% from 78.20% in March 2023. With a market cap exceeding Rs 79,000 crore, RVNL shares yielded multibagger returns, indicating strong potential for investors.

News by Rahul Yelligetti