RVNL hits fresh 52-week high on inking deal with DMRC; up 68% in 3 months

RVNL shares hits 52-week high: Shares of Rail Vikas Nigam Limited (RVNL) rose as much as 6.26 per cent to hit a fresh 52-week high of Rs 445 per share on Friday. 

The uptick in share price came after the company announced that it inked a memorandum of understanding (MoU) with Delhi Metro Rail Corporation Limited (DMRC). 

In an exchange filing, the state-owned company said, “RVNL has signed MoU with Delhi Metro Rail Corporation Limited (DMRC) for participation in the upcoming projects in India and abroad as project service provider for metro/ railways/ high speed rail/ highways/ mega bridges/ tunnels/ institutional buildings/ workshops or depots/ S&T works/ Railway electrification. 

 

Based on the order details, RVNL, in collaboration with DMRC, will undertake projects in India and overseas as service providers for metro systems, railways, high-speed rail, highways, large bridges, tunnels, institutional buildings, workshops or depots, signaling and telecommunication works, and railway electrification.

Rail Vikas Nigam Limited, headquartered in New Delhi, specialises in constructing railway infrastructure projects across India. 

Established in 2003, the company actively engages in developing and executing various railway initiatives, including new lines, track doubling, gauge conversion, electrification, metro projects, bridges (including cable-stayed), and institutional buildings. Additionally, it offers financial resource mobilisation services to support its projects. 

Rail Vikas Nigam Limited serves clients such as Indian Railways, central and state government ministries, departments, and public sector undertakings.

Financially, the state-owned company reported a 33.2 per cent year-on-year increase in profit to Rs 478.6 crore for the fourth quarter ending March 31, 2024 (Q4FY24), up from Rs 359 crore in the same quarter a year earlier (Q4FY23). 

Its revenue grew 17.4 per cent to Rs 6,714 crore in Q4FY24 compared to Rs 5,719.8 crore in Q4FY23. 

The earnings before interest, taxes, depreciation and amortisation (Ebitda) margin for Q4FY24 stood at 6.8 per cent. 

The board also declared a final dividend of Rs 2.11 per share for the financial year 2024.

The market capitalisation of RVNL is Rs 91,949.39 crore, according to Bombay Stock Exchange (BSE). The 52-week low of the stock is Rs 117.35.

At 9:28 AM, shares of RVNL were trading 4.76 per cent higher at Rs 438.70 per share. By comparison, BSE Sensex was trading 0.55 per cent lower at 79,612.97 levels.