RVNL Shares Surge 8% After Order Win; Stock Nearly Triples in a Year. surged more than 7.65 per cent to Rs 322.50 on Monday, commanding a total market capitalization of more than Rs 67,000 crore.
Tuesday’s trading session saw a roughly 8% increase in Rail Vikas Nigam Ltd. (RVNL) shares as a result of the company receiving an order from South Eastern Railway. On Monday, the exchange filed with the bourses to notify the firm of the order win.
“Rail Vikas Nigam Limited has received letter of acceptance (LoA) from SER HQELECTRICAL/South Easter Railway for designing, supply, erection, testing and commissioning for upgradation of electric traction system from 1×25 KV to 2×25 KV traction system for Kharagpur section of Kharagpur division of South Eastern Railway to meet 3000 MT loading target,” stated RVNL in its filing.
Following the announcement of order win, shares of RVNL surged more than 7.65 per cent to Rs 322.50 on Monday, commanding a total market capitalization of more than Rs 67,000 crore. The scrip had settled at Rs 299.65 in the previous trading session on Saturday.
RVNL shares have soared more than 190 per cent from its 52-week low at Rs 110.50 hit on May 31, 2023. The stock has surged more than 80 per cent in the year 2024 so far, while the stock has nearly doubled investors wealth in the last six months period. Even in the last one month, it is up 25 per cent.
Rail Vikas Nigam’s net profit rose 33.2 per cent on year-on-year (YoY) basis to Rs 478.6 crore, with a healthy topline as well as operating numbers. Its revenue from operations during the quarter under review grew 17.4 per cent YoY to Rs 6,714 crore.
At the operating level, the state-run railway company’s ebitda in Q4FY24 rose 21.8 per cent YoY to Rs 456.4 crore over Rs 374.6 crore in a year-ago period, while Ebitda margin came in at 6.8 per cent in the reporting quarter. RVNL’s board also recommended a final dividend of Rs 2.11 per equity share.
In an separate exchange filing, the company said that the President of India has approved the appointment of NC Karmali as the part-time Government nominee director on the board of Rail Vikas Nigam with immediate effect, till he holds the post of executive director/Gati Shakti, Railway Board or further orders, whichever is earlier.
Incorporated in 2003 by the Ministry of Railways, Rail Vikas Nigam Limited is a project executing agency. It is engaged in the business of mobilization of financial resources, rail project development, enhancing golden quadrilateral and port connectivity by implementing rail projects and raising extra-budgetary resources for Indian Railway project execution.
The PSU counter raised a total of Rs 481.57 crore via its IPO launched in April, 2019. The company issued its shares at Rs 19 apiece. The stock has zoomed about 1,600 per cent or 16 times from its issue price. Each lot of the PSU counter has delivered a return of more than Rs 2.35 lakh to the investors, if held so far.
