Rs 1,00,000 crore order book: Railway infrastructure company receives order worth Rs 143,37,87,127.90 from Southern Railway

DSIJ Intelligence-1 / 06 Jul 2025/ Categories: Multibaggers, Trending

Rs 1,00,000 crore order book: Railway infrastructure company receives order worth Rs 143,37,87,127.90 from Southern Railway

The stock gave multibagger returns of 220 per cent in just 2 years and a whopping 1,870 per cent in 5 years.

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award (LOA) from Southern Railway for the "Upgradation work of Electric traction system from 1x25 kV to 2x25 kV traction system" for the Salem Jn. (SA)-Podanur Jn. (PTJ) and Irugur (IGU)-Coimbatore Jn. (CBE)-Podanur Jn. (PTJ) sections of the Salem division. This domestic contract, valued at Rs 143,37,87,127.90 aims to meet a 3000 MT loading target and is expected to be completed within 24 months.

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 80,000 crore and the shares of the company have an ROE of 14 per cent and an ROCE of 15 per cent. The Board has recommended a final dividend of Rs 1.72 per share (i.e. 17.20 per cent) on the paid-up equity share of face value of Rs 10 each of the company for the financial year 2024-25.

As of March 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.84 per cent stake. The stock gave multibagger returns of 220 per cent in just 2 years and a whopping 1,870 per cent in 5 years.

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