From ₹68 to ₹140, this multibagger stock marks a strong journey in 2023

May 8, 2023

By: BI India Bureau

Multibagger railway stock

​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. ​

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RVNL has surged 608 percent in the last five years

​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. ​

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RVNL has grown 333 percent in the last one year

​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. ​

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​The stock has doubled in value in 2023​

​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.​

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RVNL’s profit has been trending higher

​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

Rail Vikas Nigam is now a ‘Navratna’ company

​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

What does RVNL do?

​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

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