Rs 1,00,000 crore order book: Railway infrastructure company receives order worth Rs 213,22,48,546.62 from Southern Central Railway

DSIJ Intelligence-1 / 12 Jul 2025/ Categories: Multibaggers, Trending

Rs 1,00,000 crore order book: Railway infrastructure company receives order worth Rs 213,22,48,546.62 from Southern Central Railway

The stock gave multibagger returns of 216 per cent in just 2 years and a whopping 1,845 per cent in 5 years.

Rail Vikas Nigam Limited (RVNL) has received a Letter of Acceptance (LOA) from South Central Railway for a domestic project valued at approximately Rs 213,22,48,546.62. The contract involves the design, supply, erection, testing, and commissioning of an overhead equipment (OHE) upgradation, converting the existing 1x25kV system to a 2x25kV AT feeding system, complete with feeder and earthing works. This significant undertaking will cover a total of 195.5 RKM / 391 TKM across the Duvvada-Rajahmundry and Samalkot-Kakinada Port sections of the Vijayawada Division, with a projected execution period of 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 79,000 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 216 per cent in just 2 years and a whopping 1,845 per cent in 5 years.

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