Rail Vikas Nigam Ltd was one of the trending stocks on the BSE today, as the shares of the company, which had been in the spotlight for their outstanding uptrend, was surprisingly locked at 5% lower circuits. After the company reported the quarter results, which fell short of expectations, shares came under heavy selling pressure.
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.
In terms of annual performance, the net profit of the company soared 27.98% to Rs 1,420.55 crore from Rs 1,110.02 crore the previous year. Also, net sales advanced by 4.64% to Rs 20,281.57 crore as against Rs 19,381.71 crore during the previous year ended on March 2022.
At the time of writing, the company had a market value of Rs 24,082 crore, with the promoter owning a massive 78.20% stake. One of the company’s strengths is its sizeable promoter holding and strong government backing. Compared to its competitors, it has a relatively low PE as well as a high RoE and RoCE.
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. Over the past year, shares of the company delivered outstanding returns of more than 250%.
Keep a close eye on this stock for the upcoming sessions!