Rs 1,00,000 crore order book: Railway infrastructure company and Texmaco Form Joint Venture to Boost Railway and Infrastructure Projects
DSIJ Intelligence-2 / 28 Aug 2025/ Categories: Mindshare, Trending
The stock gave multibagger returns of 180 per cent in just 2 years and a whopping 1,800 per cent in 5 years.
On August 27, 2025, Rail Vikas Nigam Limited (RVNL) and Texmaco Rail & Engineering Limited signed a joint venture agreement to undertake projects in the railway and allied infrastructure sectors. The new joint venture company will be incorporated pending approval from RVNL's Board of Directors and other statutory approvals.
The proposed shareholding structure will be 51 per cent for RVNL and 49 per cent for Texmaco Rail & Engineering Ltd. The agreement also outlines the scope of operations for the joint venture, which will include manufacturing, supplying, and maintaining rolling stock such as freight wagons, passenger coaches, and metro coaches.
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The company will also execute Engineering, Procurement, and Construction (EPC) contracts in railways and allied infrastructure projects, participate in domestic and international bidding, and manage railway workshops, depots, and sheds. The primary operations will be in India, with potential for expansion into other geographies.
About the Company
Rail Vikas Nigam Ltd, a Navratna company, was established in 2003 by the Government of India for various rail infrastructure projects. The company has delivered good profit growth of 21 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33.4 per cent. As of March 31, 2025, RVNL has a strong order book of Rs 1,00,000 crore, focusing on railway, metro and overseas projects.
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According to Quarterly Results, the net sales decreased by 4 per cent to Rs 6,4276 crore and net profit declined by 4 per cent to Rs 459 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales decreased by 9 per cent to Rs 19,923 crore and net profit increased by 19 per cent to Rs 1,282 crore in FY25 compared to FY24. The company has a market cap of over Rs 78,000 crore and the shares of the company have an ROE of 14 per cent and an ROCE of 15 per cent.
As of June 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 6.06 per cent stake. The stock gave multibagger returns of 180 per cent in just 2 years and a whopping 1,800 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.