199% Returns in 1 Year: Multibagger railway PSU stock rallies 6% on back-to-back order wins; Time to buy?
RVNL Share Price Today: Shares of Rail Vikas Nigam Ltd (RVNL) rallied six per cent during intra day on Wednesday, June 5 after securing back-to-back orders. RVNL has given multi-bagger returns to investors over the last one-to-three-year periods.
The railway public-sector undertaking (PSU) is a construction arm of the railway ministry for projects and transportation infra development.Shares of the multi-bagger railway PSU surged after Indian Railway zonal networks granted orders for signalling and installation project work. The surge comes against the recent plunge in share prices of most PSU stocks after the Lok Sabha election results defied exit polls with the ruling Bharatiya Janta Party (BJP) falling short of the 272-majority mark.
The National Democratic Alliance (NDA) won 293 seats with the help of BJP and the vote share of its allies.RVNL Order Win During the March quarter, RVNL's net profit rose 33 per cent to ₹478 crore, compared to ₹359.25 crore in the corresponding period last year, driven by strong revenue growth and improved operating performance. The revenue from operations grew 19 per cent to ₹6,714.01 croreAt the operating level, the PSU's earnings before interest, tax, depreciation, and amortisation (EBITDA) in the fourth quarter of FY24 rose 21.8 per cent to ₹456.4 crore compared to ₹374.6 crore in year-ago period.
The EBITDA margin came in at 6.8 per cent in the quarter-under-review, up from 6.6 per cent in the corresponding period in the previous fiscal.RVNL's board also recommended a final dividend of ₹2.11 per equity share or 21.10 per cent on the paid-up equity share capital for FY24, subject to the approval of the shareholders at the ensuing annual general meeting (AGM). The final dividend will be
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