Rs 1,00,000+ crore order book: Railway infrastructure company receives order worth Rs 90,64,80,195.36 from Southern Railway

DSIJ Intelligence-1 / 14 Aug 2025/ Categories: Multibaggers, Trending

The stock gave multibagger returns of 955 per cent in just 3 years and a whopping 1,400 per cent in 5 years.

Rail Vikas Nigam Ltd (RVNL) has received an order valued at Rs 90,64,80,195.36 from Southern Railway. This domestic contract is for the "Provision of Video Surveillance System (VSS) at 441 D & E Category Stations along with Augmentation at 43 Stations (Categories A1, A, B, and C) over Southern Railway." The order is to be executed within 18 months under the General Contract Conditions of Southern Railway.

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Additionally, the board of directors of 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.

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.

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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 67,000 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 955 per cent in just 3 years and a whopping 1,400 per cent in 5 years.

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