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Today, the share price of Rail Vikas Nigam Limited (RVNL) saw a notable increase, reaching an all-time high of ₹345.90 on the National Stock Exchange (NSE). This 15% intraday increase comes after South Eastern Railways announced a significant order win, which boosted investor confidence and propelled the stock to all-time highs.
The company's acquisition of a big contract from the South Eastern Railway headquarters is what's responsible for the stock price increase of RVNL. The electric traction system in the Kharagpur-Bhadrak segment will be upgraded from 1x25 KV to 2x25 KV as part of this contract. At a cost of more than ₹148 crore, the project will encompass the design, procurement, installation, testing, and commissioning of the new system. It is anticipated to be finished in 18 months.
The official announcement was made on Monday, with RVNL receiving a Letter of Acceptance from the South Eastern Railway. This large-scale project is part of the Kharagpur division’s efforts to meet its 3000 MT loading target by enhancing its infrastructure. The contract, which is a critical component of the division’s modernization efforts, has evidently boosted investor confidence, reflected in the significant stock price increase.
Along with this significant order, RVNL recently released strong financial results for the fiscal year 2023–2024's fourth quarter. In comparison to ₹359.25 crore during the same period previous year, the company's net profit for Q4FY24 increased by 33.2% year over year to ₹478.6 crore. With total revenues of ₹6,714.01 crore, a robust 18.8% increase in revenue was the driving force behind this remarkable profit development.
Earnings before interest, tax, depreciation, and amortization (EBITDA) for RVNL increased by 21.8% year over year to ₹456 crore, indicating a notable gain. The strong financial performance of the corporation can be attributed to its strategic project acquisitions and improved operational efficiency.
The board of RVNL has recommended a final dividend of ₹2.11 per share for the fiscal year 2023–24 in acknowledgment of the company's excellent financial standing. Investor confidence in the stock has been further bolstered by this dividend proposal in addition to the company's remarkable earnings growth and major project victories.
It is anticipated that South Eastern Railways' most recent order victory will greatly strengthen RVNL's order book and future revenue streams. Recent accomplishments and financial results demonstrate RVNL's capacity to acquire and carry out major infrastructure projects, establishing it as a major participant in the railway infrastructure market. Investor confidence is still high as the company expands its project portfolio and uses its experience to further leverage it.
Note: We do not plan to offer investing advice through our news; this is merely financial news
