Rs 1,00,000+ crore order book: Railway infrastructure company emerges as lowest bidder (L1) order worth Rs 145,34,66,865.48 from Southern Railway

DSIJ Intelligence-1 / 23 Sep 2025/ Categories: Multibaggers, Trending

Rs 1,00,000+ crore order book: Railway infrastructure company emerges as lowest bidder (L1) order worth Rs 145,34,66,865.48 from Southern Railway

The stock gave multibagger returns of 920 per cent in just 3 years and a whopping 1,755 per cent in 5 years.

Rail Vikas Nigam Ltd (RVNL) has been awarded the contract as the lowest bidder (L1) for a project from Southern Railway. The project, with an order value of Rs 145,34,66,865.48, is a domestic tender. The work involves the "Design, Supply, Erection, Testing & Commissioning of Traction Sub Stations (Scott-Connected), inclusive of Power Quality Compensating Equipment with associated Switching Posts (SP/SSP) for the 2x25 kV AT Feeding System and SCADA & Automatic Fault Locator (AFL) in the Jolarpettai Jn. - Salem Jn. (JTJ-SA) Section of the Salem Division. This project is a part of the "Mission 3000MT Loading Target" and has a completion timeline of 540 days.

Earlier, the company emerged as the Lowest Bidder (L1) for a contract from West Central Railway. The domestic order, valued at Rs 169,48,95,146, is for the design, modification, supply, erection, testing, and commissioning of a 220/132kV/2X25 kV Scott-connected Traction Sub Station and switching posts. This project, which includes SCADA work, is located between the BINA to RTA section of the Bhopal Division and has a 540-day execution period.

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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 69,000 crore and the shares of the company have an ROE of 14 per cent and an ROCE of 15 per cent.

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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 920 per cent in just 3 years and a whopping 1,755 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.