Railway stock jumps 15% after company received order worth ₹ 148.26 Cr from South Eastern Railway

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Railway stock jumps 15% after company received order worth ₹ 148.26 Cr from South Eastern Railway
Credit: © Reuters.

Shares of this large-cap company surged 15 percent in Tuesday’s trading session after receiving an order worth Rs. 148.26 crores. In just six months, the shares have delivered a multibagger return of 106 percent to its shareholders.

With a market capitalization of Rs. 69,765 crores, the shares of Rail Vikas Nigam (NS: RAIV ) Ltd started Tuesday’s trading session on a higher note at Rs. 303.30 compared to its previous close of Rs. 299.70. During the trading session, the shares hit a high of Rs. 345.90, gaining around 15 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 340 apiece.

Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a Letter of Acceptance from South Eastern Railway for the design, supply, erection, testing and commissioning for the upgradation of the Electric traction system from 1 x 25 KV to 2 x 25 KV traction system in the Kharagpur division to meet 3,000 MT loading target. The order is said to be worth Rs. 148.26 crores.

Looking at the company’s financial statements, the revenue zoomed by 43 percent from Rs. 4,689.33 crores in the December quarter to Rs. 6,714.01 in the March quarter. In addition, the net profits jumped by 33 percent from Rs. 358.57 crores to Rs. 478.4 crores during the same period.

Rail Vikas Nigam has achieved a significant milestone with its order book reaching Rs. 85,000 crores, out of this, Rs. 40,000 crores belongs to the bid portion and Rs. 45,000 crores for the nomination portion. In addition, the PSU company looks to transform the local scenario with global infra levels, focusing mainly on railway, metro, and other segments.

As per the latest data, for FY 2025, the company aims to clock Rs. 23,000 crores in revenue and end the year with an order book between Rs. 92,000 crores to Rs. 1 lakh crore. And it expects to win orders between Rs. 20,000 crores to Rs. 25,000 crore in FY2025.

Additionally, the company’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY23-24 with the former reported at 18 percent and the latter at 16.74 percent.

Headquartered in New Delhi, Rail Vikas Nigam was incorporated in 2003. The company is engaged in constructing Rail Infrastructure projects in India. The company undertakes rail project development and implementation projects as well as provides financial resource mobilization services to its customers spanning various Central and State Government Ministries, departments, etc.

Written By Vaibhav Patil

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