May 8, 2023
By: bhakti.makwana@timesinternet.in
Credit: Canva
Rail Vikas Nigam Limited (RVNL), a public-sector railway company, has been rallying significantly in the last five years, all thanks to robust orders and the government efforts towards infrastructure development.
Credit: Canva
The railway company has surged from ₹19 to ₹140 today, multiplying its value by seven times. Note that, in the 2023-24 budget, the government increased its capex by 33.4 percent to ₹10 Lakh crore for infrastructure development, with record allocation to the Railways.
Credit: Canva
The company has added several large orders to its kitty in the last one year. A project to build the Mumbai metro line and another to construct and maintain Vande Bharat Express trains are among the large orders it has bagged.
Credit: Canva
Adding to the investor interest in a multibagger stock, analysts have also been bullish on the company’s growth prospect. “After being a railway capex arm for almost 20 years, RVNL is reinventing itself and is embarking on a new journey (open bidding vs nomination),” said a report by Elara Capital.
Credit: Canva
The company’s net profit has been growing consistently – reporting ₹1,087 in FY22, up from ₹940 crore in FY21 and ₹789 crore in FY20. RVNL is yet to announce its Q4 and FY23 results.
Credit: Rail Vikas Nigam
The government in May upgraded RVNL's status to a ‘Navratna’ central public-sector enterprise (CPSE) from a ‘Miniratna’ category, making it the 13th Navratna company in India. Navratna companies are public-sector companies that have enhanced financial autonomy.
Credit: Rail Vikas Nigam
Rail Vikas Nigam executes all types of railway projects including new lines, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges and institutional buildings.
Credit: Rail Vikas Nigam