Rs 1,00,000+ crore order book: Railway infrastructure company announces reshuffling of shareholding pattern in Kinet Railway Solutions Pvt Ltd
DSIJ Intelligence-1 / 13 Aug 2025/ Categories: Multibaggers, Trending
The stock gave multibagger returns of 960 per cent in just 3 years and a whopping 1,500 per cent in 5 years.
The board of directors for Rail Vikas Nigam Limited (RVNL) has noted a significant change in the shareholding pattern for its joint venture, Kinet Railway Solutions Private Limited. According to the decision by the Ministry of Railways (MoR), the share of Joint Stock Company Metrowagonmash has been reduced from 70 per cent to 35 per cent. Concurrently, the share of Joint Stock Company Locomotive Electronic System has increased from 5 per cent to 40 per cent, while RVNL's share remains unchanged at 25 per cent. This reshuffling was officially noted during a board meeting on August 12, 2025.
Additionally, RVNL is expanded its international reach by signing an MoU with Mr. Ashraf Gulam Mohmed Theba from Oman, aiming to foster business development, market research, and company representation within the Sultanate. Domestically, RVNL secured a Letter of Acceptance (LOA) from Delhi Metro Rail Corporation Limited for the "Contract D2C-02" project, valued at over Rs 447.42 crore. This significant undertaking involves the design and construction of a 7.298 km viaduct for the Delhi MRTS Phase-IV Project, including seven station platforms from Lajpat Nagar to Saket G block, with an expected completion time of 36 months.
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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 June 30, 2025, RVNL has a strong order book of Rs 1,00,000+ crore, focusing on railway, metro and overseas projects.
According to Quarterly Results, the net sales decreased by 4 per cent to Rs 3,909 crore and net profit declined by 40 per cent to Rs 134 crore in Q1FY26 compared to Q1FY25. 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 68,000 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 960 per cent in just 3 years and a whopping 1,500 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.