(Source – livehindustan.com)
Shares of Rail Vikas Nigam Ltd. (RVNL) soared by as much as 18% to reach an all-time high on Friday, July 5. This surge came after the state-run company signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd. (DMRC) to collaborate on upcoming projects in India and abroad. This partnership is set to bolster RVNL’s presence and capabilities in the rail infrastructure sector.
The company has reported impressive financial performance, with a 17.4% increase in revenue from the previous year, amounting to ₹6,714 crore. Additionally, RVNL’s profit margins expanded by 20 basis points, growing from 6.6% to 6.8%. This financial growth underscores the company’s robust operational efficiency and strategic execution.
Strong Financial Performance and Ambitious Targets
RVNL’s net profit saw a substantial 33% year-on-year increase, reaching ₹478.6 crore. At the close of the financial year 2024, the company’s total order book stood at an impressive ₹85,000 crore, with ₹40,000 crore attributed to bid portions and ₹45,000 crore to nomination portions.
Looking ahead to the financial year 2025, Delhi Metro has set ambitious goals. The company aims to achieve ₹23,000 crore in revenue and anticipates its order book to grow between ₹92,000 crore and ₹1 lakh crore. Furthermore, RVNL expects to secure orders worth between ₹20,000 crore and ₹25,000 crore in the upcoming year. This is a significant increase from the revenue of ₹21,889 crore reported for the financial year 2024.
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Limited Analyst Coverage and Stock Performance
Despite its strong performance, RVNL does not receive extensive analyst coverage. The two most recent recommendations for the stock have been “hold” ratings. This limited coverage suggests that the stock may be under the radar for many investors, presenting potential opportunities for those who recognize its growth potential.
On Thursday, Delhi Metro shares closed 0.54% higher at ₹419.20 apiece on the NSE. The stock came close to its record high level of ₹431.80, which was achieved on June 24 this year. The recent surge and financial achievements indicate strong investor confidence and optimism about RVNL’s future prospects.
In conclusion, RVNL’s strategic partnership with DMRC and its robust financial performance have driven its shares to new heights. With ambitious targets set for the next financial year and a substantial order book, RVNL is well-positioned for continued growth and success in the rail infrastructure sector.
