Rail Vikas Nigam Limited surges upon obtaining an order of ₹180 Cr
Following the receipt of an order of Rs. 180 crore from East Central Railway for the turnkey project of the UP and DN line of Garwa Road, a large-cap railway stock in the Navratna category saw a rise of 1.69%. Rail Vikas Nigam Limited, with a market capitalization of Rs. 1,11,319.22 crores, started the trading day at Rs. 521.50, down from the closing on Friday of Rs. 526.35. The stock increased 1.69% from Friday’s closing to an intraday high of Rs. 535. The share price of the stock finished at Rs. 533.90.
Reason for Rise: Rail Vikas Nigam Limited has been chosen as the lowest bidder for a contract with East Central Railway, according to exchange filings. A 2x25KV feeder line along the track and 25KV OHE modification works are part of the project, which aims to reach a 3000 MT loading objective for the UP and DN lines of the Garwa Road-Mahadiya section in the Dhanbad Division. The project would take 18 months to complete and will cost Rs. 180 crores.
Recent Projects: The business was awarded a contract by SER HQ Electrical/South Eastern Railway in August for the design, supply, building, testing, and commissioning of a 132 KV traction substation and related components in a 2×25 KV system at Kharagpur. The contract is valued at Rs. 202.87 crores. Furthermore, it was given a Rs. 111.38 crore order by Southern Railway to replace the remaining AFTCs in the automated block signaling sections of the Chennai Division and offer MSDAC at stations. Additionally, the business established a subsidiary in Uzbekistan called “Rail Vikas Nigam LLC.”
Company Finance: Compared to Q1FY24, when net profit was Rs. 333.57 crores, the company’s Q1FY25 net profit was Rs. 217.8 crores, a 34.70% decline. Moreover, operating revenue fell by 25.37% to Rs. 4,064.27 crores from Rs. 5,446.25 crores during the same period. Over the last half-year, the stock has returned around 104%, and thus far this year, it has produced a multibagger return of 193%. In FY24, the company’s ROCE was 17.80% and its ROE was 20.39%.
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