Rail Vikas Nigam Ltd (RVNL), a government-established organization in 2003, has been playing a pivotal role in undertaking various rail infrastructure projects in India. Over the past few months, the company has garnered significant attention as it secured substantial orders from diverse clients across the country. In recognition of its outstanding performance, RVNL was bestowed with the esteemed title of ‘Navratna Company’ in May 2023. Rail Vikas Nigam Limited (RVNL) announced that the joint venture between Rail Vikas Nigam Ltd-SCC Infrastructure Pvt Ltd (RVNL-SCC JV) has been awarded a letter of award (LOA). The LOA entails the responsibility for planning, designing and constructing the main canal and associated structures, along with the distribution system, to facilitate irrigation. The project will be executed on an Engineering, Procurement and Construction (E.P.C.) single responsibility turnkey basis, with an additional 10-year operation and maintenance (O&M) component. The total project cost amounts to Rs 2,248.94 crore, with RVNL holding a 51% share and SCC holding a 49% share.
RVNL has established itself as a formidable player in the market, boasting a substantial market capitalization of over Rs 25,000 crore. With a price-to-earnings (PE) ratio of 19x and an impressive return on equity (ROE) of 21.02%, the company’s financial indicators reflect its strong position in the industry. Moreover, RVNL has consistently presented excellent quarterly and annual financial statements, further solidifying its reputation.
During Q3FY23, RVNL experienced remarkable growth in both net sales and net profit, with a notable increase of over 23% and 30%, respectively, compared to the same period in the previous year (Q3FY22). This remarkable performance demonstrates the company’s ability to deliver sustainable growth and profitability.
Investors have witnessed remarkable returns from RVNL’s shares, with the stock providing multibagger returns of 106% within a span of just six months. Over the course of one year, the company’s shares yielded an impressive return of over 290%. These exceptional returns highlight the immense potential and value offered by RVNL as a public sector undertaking (PSU) stock.
On Wednesday, shares of RVNL were trading at Rs 123 per share, up 3.58% with an intraday high of Rs 123.25 per share and an intraday low of Rs 119.10 per share.