Shares of Rail Vikas Nigam, a railway infrastructure company, soared nearly 3% to ₹124.70 apiece in early trade on Monday. In an exchange filing on Friday, the company announced that it emerged as the lowest bidder (L1) for the Maharashtra Metro Rail Corporation project (MMRCL). This entails designing and constructing an elevated metro viaduct spanning 6.92 km in Reach 2A of the NMRP Phase 2.
With a project cost of ₹394.9 crore, the execution timeline for this project is set at 30 months. In addition to this, the company also emerged as the lowest bidder (L1) position for two packages for the Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Ltd. (MPPKVVCL) in Jabalpur, with a combined value of ₹280 crore, as mentioned in the company's exchange filing.
Furthermore, On June 20, the state-owned company was awarded orders worth ₹11,256 crore from the Chennai Metro Rail Ltd. These orders are for the construction of underground stations in the Phase-II project.
Railway stocks have been performing well on Dalal Street for some time now, owing to robust solid performance in FY23 and strong order inflows with ongoing transformation in the railway sector.
Rail Vikas Nigam shares began their upward rally on October 20 at around ₹35.75 apiece after it bagged an order worth ₹484 crore for the development of Kharicut Canal (between Naroda Smashan Gruh and Vinzol Vehla) in AMC Area Package 2 and 3.
Since then, the stock has witnessed an upward surge and ended FY23 at ₹68.60. Overall, during this period, investors enjoyed a return of nearly 110%. Furthermore, in FY24 thus far, the stock has continued its upward trajectory, rallying by 79%.
From its 52-week low of ₹29.8 apiece, marked in July last year, the stock has skyrocketed 311% to date. This remarkable performance positioned the stock as the second top performer in the S&P BSE PSU index.
In terms of financials, the company posted a consolidated net profit of ₹1,421 crore for the fiscal year ending March 31, 2023. During the same period of last year, it recorded a net profit of ₹1,183 crore. The revenue from operations during FY23 came in at ₹20,282 crore as compared to ₹19,382 crore recorded in FY22.
The company is a Category-I Mini-Ratna CPSE under the Ministry of Railways. It is engaged in the business of executing and implementing all types of rail infrastructure projects, including new lines, doubling (including 3rd and 4th lines), gauge conversion, railway electrification, metro projects, and more.
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