Shares of Rail Vikas Nigam Ltd (RVNL) jumped roughly 8 percent during Tuesday’s trading session after the company secured an order from South Eastern Railway. On Monday, the company announced the order win through an exchange filing.

According to the filing, Rail Vikas Nigam Limited received a letter of acceptance from the SER HQELECTRICAL/South Eastern Railway for the design, supply, erection, testing, and commissioning to upgrade the electric traction system from 1×25 KV to 2×25 KV in the Kharagpur section of the Kharagpur division of South Eastern Railway, aiming to meet a 3000 MT loading target.

 

Following the announcement of the order win, RVNL shares surged over 7.65 percent to reach Rs 322.50 on Monday, giving the company a market capitalization exceeding Rs 67,000 crore. The stock had previously closed at Rs 299.65 in the Saturday trading session.

RVNL shares have soared more than 190 percent from their 52-week low of Rs 110.50, which was recorded on May 31, 2023. In 2024 alone, the stock has increased by over 80 percent and has nearly doubled investors’ wealth over the past six months. Additionally, the stock has risen 25 percent in the past month.

 

Rail Vikas Nigam’s net profit increased by 33.2 percent year-on-year (YoY) to Rs 478.6 crore, driven by strong revenue and operating performance. During the quarter under review, the company’s revenue from operations grew by 17.4 percent YoY to Rs 6,714 crore.

At the operating level, RVNL’s EBITDA in Q4FY24 rose 21.8 percent YoY to Rs 456.4 crore, up from Rs 374.6 crore in the same period last year, with an EBITDA margin of 6.8 percent for the quarter. Additionally, the board of RVNL recommended a final dividend of Rs 2.11 per equity share.

 

 

In a separate exchange filing, Rail Vikas Nigam Limited announced that the President of India has approved the appointment of NC Karmali as the part-time Government nominee director on its board. This appointment is effective immediately and will continue as long as Karmali holds the position of Executive Director/Gati Shakti at the Railway Board or until further orders, whichever comes first. Established in 2003 by the Ministry of Railways, Rail Vikas Nigam Limited is a project execution agency.

The company is involved in developing rail projects, mobilizing financial resources, and port connectivity by implementing rail projects, enhancing the golden quadrilateral, and raising extra-budgetary resources for Indian Railway project execution.

 

IPO Gains

Rail Vikas Nigam Limited raised Rs 481.57 crore through its IPO launched in April 2019, issuing shares at Rs 19 each. Since then, the stock has surged approximately 1,600 percent or 16 times from its IPO price. Investors holding each lot of the PSU counter have gained returns exceeding Rs 2.35 lakh if held till now.