RVNL Share Price Today: Shares of Rail Vikas Nigam Ltd (RVNL) rallied 6 per cent during intra-day trading on Wednesday, June 5, after the company secured back-to-back orders. RVNL has given multi-bagger returns to investors over the last one-to-three-year periods. The railway public-sector undertaking (PSU) is the construction arm of the railway ministry for projects and transportation infrastructure development.
Shares of the multi-bagger railway PSU surged after Indian Railway zonal networks granted orders for signalling and installation project work. The surge comes against the recent plunge in share prices of most PSU stocks after the Lok Sabha election results defied exit polls with the ruling Bharatiya Janata Party (BJP) falling short of the 272-seat majority mark. The BJP-led National Democratic Alliance (NDA) won 293 seats and the opposition INDIA bloc bagged 234 seats.
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The state-owned PSU on Wednesday said that it had received an order worth around ₹390 crore from the Indian Railways. The contract is for the construction of the Sitarampur bypass line under the Asansol division, said RVNL in a regulatory filing to the stock exchanges.
RVNL has received a Letter of Acceptance (LoA) from the Eastern Railway for the construction of the Sitarampur bypass line. “The project cost is ₹3,90,97,35,276.55 including GST, and the duration of the project is 24 months,” RVNL stated in the filing.
Separately, RVNL informed stock exchanges that it emerged as the lowest bidder (L1) for an order from Dakshin Haryana Bijli Vitran Nigam Ltd. It is the implementation of some works in the Gurugram Revamped Distribution Sector Scheme (RDSS). The project cost is ₹124 crore.
On Monday, RVNL had received an LoA from South Central Railway for an engineering, procurement and construction (EPC) tender for the proposed doubling of railway track in a portion of the Nanded Division of South Central Railway, at a project cost of ₹440 crore. The project is expected to be completed in 30 months.
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 the 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.
On Wednesday, shares of RVNL opened at ₹353.10 and gained 6 per cent to hit an intra-day high of ₹375 against a 52-week high mark of ₹424.95 apiece on the BSE. Shares settled 0.50 per cent lower at ₹353.30 apiece on the BSE. RVNL's share price has almost doubled so far in 2024. It rose 200 per cent in the past year.
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 24.36 per cent returns, against 0.64 per cent and 0.68 per cent returns by Nifty 50 and Sensex, respectively. In the last one year, RVNL has given multibagger 199.53 per cent returns to investors as against 22.05 per cent and 18.92 per cent returns by Nifty 50 and Sensex, respectively.
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