RVNL secures lowest bidder status for Jabalpur project valued at Rs 251 crore

During Tuesday’s deals, the shares of Rail Vikas Nigam Limited zoomed by 3.43%. Additionally, the stock hit a fresh 52-week high mark of Rs 231.80 apiece on BSE. Furthermore, the scrip witnessed a massive spurt in volume by more than 2.83 times. The company’s current market capitalisation is Rs 46,600.20 crore.

Recent development:

The company has secured the position of the Lowest Bidder (L1) for a significant Jabalpur project valued at Rs 251 crore. The project involves the “Supply, Installation, testing, and commissioning of 11 KV Line associated works” in various circles including Jabalpur, Katni, Mandla, Dindori, Seoni, Chhindwara, Narsinghpur, Balaghat, Shahdol, Anuppur, and Umariya under the Revamped Reforms-based and Results-linked Distribution sector (Package-11) of MPPKVVCL in the Jabalpur company area.

Positive Impacts:

• Revenue boost: The Rs 251 crore project represents a significant revenue generation opportunity for the company, potentially boosting its top line and profitability.
• Order backlog increase: This win adds to the company’s order backlog, providing visibility into future revenue and potentially attracting further investors.

About the company

Established in 2003 by the Government of India, Rail Vikas Nigam Ltd is actively involved in the implementation of diverse railway infrastructure projects assigned by the Ministry of Railways (MoR). These projects encompass a wide range, including but not limited to doubling of tracks, gauge conversion, new railway lines, railway electrification, construction of major bridges, establishment of workshops, production units, and the sharing of freight revenue with the Railways, all in accordance with the concession agreement established with the Ministry of Railways.

Revenue breakdown by product category

• The majority of the revenue, 82.91%, is derived from MoR Metro Projects. Additionally, 9.23% comes from another segment of MoR Metro Projects. SPVs contribute 4.7% to the total revenue, while Projects account for 1.14%.
• The remaining 2.02% is generated from various other sources. This demonstrates the company’s diversified portfolio.

Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 190% in the last 3 years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.