Rail Vikas Nigam Limited (RVNL), a prominent PSU railway company, has secured a significant contract from Delhi Metro Rail Corporation Limited, signaling strong business momentum despite recent dips in its stock performance.
A Major Boost for RVNL: Delhi Metro Project
RVNL recently announced it received a Letter of Award (LOA) from Delhi Metro Rail Corporation Limited (DMRC). This substantial contract involves the design and construction of a 7.298-kilometer viaduct.
The project includes seven crucial station platforms at locations like Pushp Vihar, Saket District Court, and Lajpat Nagar, as part of the Delhi MRTS Phase-IV Project. This major undertaking is valued at an impressive Rs 447.42 crore, inclusive of GST.
Understanding RVNL’s Stock Performance
On Friday, July 18, RVNL shares closed slightly down at Rs 374.95. The company’s total market capitalization stands at over Rs 78,177 crore as of July 19.
While the stock has seen a short-term dip, falling 1.45% in the last week and 3.92% over two weeks, its long-term trajectory tells a different story. In the past year, the stock declined by 35.87%.
However, looking at broader timeframes, RVNL has delivered exceptional returns to investors. Over the last three years, the stock has surged by more than 1110%. Its five-year return is even more remarkable, exceeding 1800%.
The stock’s 52-week high was Rs 639, while its 52-week low stood at Rs 305, highlighting its volatility but also its significant growth potential over time.
Dividends and Corporate Actions
RVNL has consistently rewarded its shareholders with dividends. In 2024, the company paid a dividend of Rs 2.11 per share. This followed 2023, when it announced dividends totaling Rs 2.13 (Rs 1.77 and Re 0.36).
It’s worth noting that RVNL has not issued any bonus shares to its equity shareholders to date.
- RVNL secured a Rs 447.42 crore Delhi Metro project.
- Despite recent short-term dips, RVNL stock has given over 1110% returns in 3 years and over 1800% in 5 years.
- The new contract highlights the company’s strong order book and continued expansion in the railway infrastructure sector.
This latest order win underscores RVNL’s crucial role in India’s expanding urban and national railway network, reinforcing its position as a key player in the infrastructure development landscape.
