415% Returns in 1 Year: Multibagger railway PSU shines on D-Street over big orders; stock up 60% in 1 month

RVNL Share Price Today: Shares of Rail Vikas Nigam Ltd (RVNL) rallied over four per cent  to hit a fresh lifetime high during intra-day trading on Thursday, July 11, after the state-owned firm secured back-to-back orders. RVNL has given multi-bagger returns to investors over the last one-to-three-year periods. The public-sector undertaking (PSU) is the construction arm of the railway ministry.

Shares of the multi-bagger railway PSU surged after the Indian Railway zonal networks granted signalling and installation project work orders. The surge comes as most PSU and defence stocks rose after Lok Sabha election results. Analysts are upbeat on these sectors ahead of the upcoming Union Budget on July 23.

Also Read: 199% Returns in 1 Year: Multibagger railway PSU stock rallies 6% on back-to-back order wins; time to buy?

RVNL Order Win

The state-owned PSU said on Thursday that it had received an order worth around ₹138 crore from the Central Railways zone installation work. RVNL said in a regulatory filing to the stock exchanges that it has received a Letter of Acceptance (LoA) from the Central Railway zone.  

RVNL was granted OHE modification work to upgrade the existing 1 x 25 kV electric traction system to a 2 x 25 kV AT feeding system in the Amla-Nagpur section in the Nagpur division of the Central Railway zone to meet the 3,000 MT loading target. The contract will be executed in 24 months.

Earlier this week, RVNL emerged as the lowest bidder for the design, supply, erection, testing, and commissioning of certain power systems on the Kharagpur-Bhadrak section of the Kharagpur division under the South Eastern Railway zone. The order was worth ₹203 crore.

Also Read: Market cap of 5 railway PSUs including RVNL, IRFC surges over ₹2 lakh crore in 2024 so far – here’s why

Separately, the Delhi Metro Rail Corporation (DMRC) and RVNL signed a Memorandum of Understanding (MoU) this month to collaborate and jointly work as a project service provider for the design, construction and consultancy projects in India and abroad. Last month, RVNL won a contract worth ₹191.53 crore from the South Eastern Railway.

RVNL Q4 Results

During the March quarter, RVNL's net profit rose 33 per cent to ₹478 crore, compared to ₹359.25 crore in the corresponding period last year, driven by strong revenue growth and improved operating performance. The revenue from operations grew 19 per cent to ₹6,714.01 crore

At the operating level, the PSU's earnings before interest, tax, depreciation, and amortisation (EBITDA) in the fourth quarter of FY24 rose 21.8 per cent to ₹456.4 crore compared to ₹374.6 crore in the year-ago period. The EBITDA margin came in at 6.8 per cent in the quarter under review, up from 6.6 per cent in the corresponding period in the previous fiscal.

RVNL Share Price Trend

On Thursday, shares of RVNL opened at ₹634.50 and gained four per cent to hit a fresh 52-week high of ₹643.95, before settling 3.19 per cent higher at ₹630 apiece on the BSE. RVNL's share price has almost doubled so far in 2024, rising around 200 per cent. Over the past 12 months, they rose around 350 per cent and around 62 per cent in the last one month.

Also Read: Stocks to buy or sell: RVNL to Indigo Paints — Sumeet Bagadia recommends five breakout stocks today — July 11

According to Trendlyne data, RVNL has given better returns compared to Nifty 50 and Sensex in the last year. In the past month, the railway PSU gave 68.47 per cent returns, against 4.54 per cent and 4.45 percent returns by Nifty 50 and Sensex, respectively. RVNL has given multi-bagger 142.17 per cent returns in the last three months, 219.15 per cent returns in six months, and 415.34 per cent returns in one year.

RVNL, under the Ministry of Railways, was granted 'Navratna' status last year. The Navratna companies have the autonomy to invest up to ₹1,000 crore without seeking approval from the central government. RVNL was incorporated as a PSU on January 24, 2003, with the objective of implementing projects relating to the creation and augmentation of capacities of rail infrastructure. The company was granted Mini-Ratna status in September 2013.