Shares of Rail Vikas Nigam Limited (RVNL), a state-owned Navratna PSU, tumbled by 6% despite winning a significant order valued at ₹2,248.95 crore. The order was granted to the RVNL-SCC Infrastructure Pvt Ltd joint venture, which will undertake the planning, design, and construction of a main canal and structures to provide irrigation facilities on an EPC (Engineering, Procurement, and Construction) turnkey basis. The contract also includes a 10-year operations and maintenance (O&M) period, ensuring long-term engagement for RVNL.
Source :- bbc news
While the news of securing this lucrative project could have sparked optimism, the stock’s decline can be attributed to broader market conditions, short-term profit booking, or correction after a stellar rally. RVNL has been on a remarkable upward trajectory, with its shares delivering multibagger returns. Over the past six months, RVNL’s stock surged by over 106%, while in the last year, the stock soared by an impressive 290%. The company’s share price had recently crossed ₹124, significantly up from its 52-week low of ₹29
Source:- news 18
RVNL has consistently performed well, driven by a robust order book and strong financials. The company’s quarterly results have been impressive, with net sales and profit both growing substantially. In Q3FY23, net sales rose by over 23%, and net profit jumped by more than 30% compared to the same quarter in the previous year
Additionally, RVNL’s operational efficiency is reflected in its market capitalization, which stands at approximately ₹25,500 crore, with a PE ratio of 19x and a return on equity (ROE) of 21.02%
Despite the current dip, investors with a long-term perspective might view the correction as an opportunity to accumulate the stock, considering its strong fundamentals and growth potential in the infrastructure sector.
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