Multibagger Railway PSU Hits Upper Circuit for Second Day: Records 193% Returns in 1 Year!

RVNL, a railway public-sector undertaking (PSU), continued its winning streak for the second consecutive day, with its shares surging nearly 15% to hit a record high on Wednesday, May 22. Over the past one to three years, RVNL has delivered significant returns to investors. It functions as the construction arm of the railway ministry, focusing on projects and transportation infrastructure development.

The surge in RVNL’s share price follows its robust performance in the January-March quarter of fiscal 2023-24 (Q4FY24) and the announcement of a large order from the South Eastern Railway headquarters-Electrical on May 21.

RVNL Q4 Results

In the March quarter, RVNL’s net profit increased by 33% to ₹478 crore compared to ₹359.25 crore in the same period last year. This growth was driven by strong revenue growth and improved operating performance. The revenue from operations also grew by 19% to ₹6,714.01 crore.

The PSU’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 21.8% to ₹456.4 crore in Q4FY24 compared to ₹374.6 crore in the previous year. The EBITDA margin increased to 6.8% from 6.6% in the corresponding period last fiscal.

RVNL’s board has recommended a final dividend of ₹2.11 per equity share for FY24, subject to shareholder approval at the annual general meeting (AGM).

RVNL Order Win

RVNL recently received a Letter of Acceptance from the South Eastern Railway headquarters-Electrical for an order in the Kharagpur division. This order aims to upgrade the electric traction system from 1 x 25 KV to 2 x 25 KV for the Kharagpur (Excl.)-Bhadrak (Excl.) segment. The project involves design, supply, erection, testing, and commissioning of the electric traction system and is valued at over ₹148 crore.

RVNL Share Price Trend

RVNL’s share price has been on an upward trend, hitting consecutive upper circuits following positive brokerage recommendations and its strong Q4 performance. On Wednesday, shares opened at ₹343.60, reaching a 52-week high of ₹359, before closing slightly lower at ₹341.55 on the BSE. Over the past year, RVNL has outperformed the Nifty 50 and Sensex indices, delivering returns of 193% compared to 24.14% and 20.24% respectively.