Indian headline indices began the session on a higher note, with optimism evident across all sectors. The majority of railway-related stocks were on the upswing and witnessed heavy buying. Rail Vikas Nigam Ltd was one of the trending stocks on the BSE today, with the shares of the company soaring more than 10% during the opening trades of the session to reach an intraday high of Rs 132.10 per share on the BSE.
After a significant rally before, shares have been trading lower for many sessions and have also come under selling pressure after the company released quarterly earnings that fell short of expectations.
Taking into account the company’s quarterly performance, on a consolidated basis, it reported a decline of 11.15% from Rs 6,437.54 crore registered in Q4FY22, recording total revenue of Rs 5,719.83 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it fell 5% from Rs 378.16 crore to Rs 359.25 crore.
At the time of writing, the company had a market value of Rs 27,000 crore, with the promoter owning a massive 78.20% stake. The company’s significant promoter holding and strong government backing are among its strengths. It enjoys a strong RoE and RoCE with a comparatively low PE as compared to its competitors. Over the past year, shares of the company delivered stellar returns of nearly 300%.
The Government of India incorporated Rail Vikas Nigam Ltd in 2003, and it is in the business of putting various rail infrastructure projects, such as doubling, gauge conversion, new lines, railway electrification, significant bridges, workshops and production units, into action. According to the concession agreement made with the Ministry of Railway, it also shares freight revenue with the railways.
Keep a close eye on this stock for the upcoming sessions!