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Business News/ Markets / Stock Markets/  193% Returns in 1 Year: Multibagger railway PSU stock hits upper circuit for second straight day on order win, Q4 show
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193% Returns in 1 Year: Multibagger railway PSU stock hits upper circuit for second straight day on order win, Q4 show

RVNL Share Price Today: Shares of RVNL gained 4.48 per cent on Wednesday to hit a fresh 52-week high mark for the second straight session over robust Q4 results.

RVNL share price today: Shares of the railway PSU hit 52-week high todayPremium
RVNL share price today: Shares of the railway PSU hit 52-week high today

RVNL Share Price Today: Shares of Rail Vikas Nigam Ltd (RVNL) extended their winning streak for the second straight session, surging nearly 15 per cent during the period to hit a lifetime record-high mark on Wednesday, May 22. RVNL has given multi-bagger returns to investors over the last one-to-three-year periods. The railway public-sector undertaking (PSU) is a construction arm of the railway ministry for projects and transportation infra development.

Shares of the multi-bagger railway PSU have hit back-to-back 52-week highs this week on robust January-March quarter results for fiscal 2023-24 (Q4FY24) numbers. The share surge also came after the PSU secured a large order from the South Eastern Railway headquarters-Electrical on Tuesday, May 21.

Also Read: RVNL share price rises 15% to all time high on a large order win from South Eastern Railways

RVNL Q4 Results

During the March quarter, RVNL's net profit rose 33 per cent to 478 crore, compared to 359.25 crore in the corresponding period last year, driven by strong revenue growth and improved operating performance. The revenue from operations grew 19 per cent to 6,714.01 crore 

At the operating level, the PSU's earnings before interest, tax, depreciation, and amortisation (EBITDA) in the fourth quarter of FY24 rose 21.8 per cent to 456.4 crore compared to 374.6 crore in year-ago period. The EBITDA margin came in at 6.8 per cent in the quarter-under-review, up from 6.6 per cent in the corresponding period in the previous fiscal.

RVNL's board also recommended a final dividend of 2.11 per equity share or 21.10 per cent on the paid-up equity share capital for FY24, subject to the approval of the shareholders at the ensuing annual general meeting (AGM). The final dividend will be paid within 30 days from the date of its declaration at the AGM.
 

RVNL Order Win

RVNL on Monday announced that it received a Letter of Acceptance (LoA) received from South Eastern Railway headquarters-Electrical. The letter is in reference to the order from Kharagpur division of South Eastern Railway, that intends to meet its 3000 MT loading Target. 

The Kharagpur division of South Eastern Railway thereby is upgrading its electric traction system from 1 x 25 KV to 2 x 25 KV for the Kharagpur (Excl.)-Bhadrak (Excl.) segment. The order involves design, supply, erection, testing, and commissioning of the electric traction system.

The order is to be completed in 18 months and the cost of work as per RVNL release is slightly more than 148 crore i.e 14826,89 ,066.54 ( one hundred forty-eight crore twenty-six lakh eighty nine thousand sixty-six rupees and fifty-four paisa) including applicable taxes, as per the release.

Also Read: Multibagger Railway stocks RVNL, IRFC, IRCON, RITES , RailTel may see up to 30% upside- Prabhudas Lilladher


RVNL Share Price Trend

Shares of RVNL have risen for consecutive sessions and hit back-to-back upper circuit on top brokerage recommendations after its robust Q4 show. On Wednesday, shares of RVL opened at 343.60 and gained 4.48 per cent to hit a fresh 52-week high-mark of 359, before settling 0.04 per cent lower at 341.55 apiece on the BSE. Shares had hit 52-week high on Tuesday as well extending the persistent rally over Q4 results.

According to Trendlyne data, RVNL has given better returns compared to Nifty 50 and Sensex in the last one year. In the past one month, the railway PSU gave 32 per cent returns, against 2.04 per cent and 1.55 per cent returns by Nifty 50 and Sensex respectively. In the last one year, RVNL has given multibagger 193 per cent returns to investors as against 24.14 per cent and 20.24 per cent returns by Nifty 50 and Sensex respectively.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 22 May 2024, 04:48 PM IST
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