RVNL share price: Rail Vikas Nigam Ltd (RVNL) saw its share price surge by over 15% during intraday trading on Tuesday, reaching an all-time high of ₹345.90 on the NSE. Over the past year, RVNL’s share price has soared by more than 190%, delivering multi-bagger returns to investors.
The surge in RVNL’s share price on Tuesday was attributed to a significant order win. On Monday, RVNL announced that it had received a Letter of Acceptance from the South Eastern Railway headquarters-Electrical. This correspondence concerns an order originating from the Kharagpur division of the South Eastern Railway. The objective is to fulfill its 3000 MT loading target by upgrading the electric traction system from 1 x 25 KV to 2 x 25 KV for the Kharagpur (Excl.)-Bhadrak (Excl.) segment.
The project involves the design, supply, erection, testing, and commissioning of the new electric traction system. The order, valued at over ₹148 crore (₹148,26,89,066.54 including applicable taxes), is expected to be completed within 18 months, according to the RVNL release.
A few days ago, RVNL announced its financial results for the March 2024 quarter and the full fiscal year FY24. RVNL reported a significant 33.2% year-on-year increase in net profit, reaching ₹478.6 crores in Q4FY24 compared to ₹359.25 crores in the same quarter the previous year. This growth was driven by strong revenue growth and improved operating performance. Revenues grew by 18.8% year-on-year to ₹6,714.01 crore, while earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 21.8% year-on-year to ₹456 crore, boosting overall earnings performance.
Additionally, the Board recommended a final dividend of ₹2.11 per share (2.11%) on the paid-up equity share capital for the financial year 2023-24.
The positive sentiment driven by strong financial performance and dividend yield is being further bolstered by increasing order flows, which are enhancing the forward earnings outlook.
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