From ₹68 to ₹140, this multibagger stock marks a strong journey in 2023
May 8, 2023
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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