📷 Image Credits: Benzinga India
Rail Vikas Nigam Limited (RVNL) saw its share price skyrocket by over 18% on Friday, reaching a new all-time high of ₹496.60. The surge comes as the company signed a Memorandum of Understanding (MoU) with the Delhi Metro Rail Corporation, sparking investor optimism. This bullish sentiment extended to other railway stocks, including IRCON and IRFC, which also experienced significant gains. IRCON’s share price rose by around 11%, while IRFC shares surged by 7% during Friday’s trading.
The sharp rally in RVNL’s stock price helped the company surpass the significant milestone of reaching a market capitalisation of over ₹1 lakh crore. As of the latest update, RVNL’s market capitalisation stands at approximately ₹1.02 lakh crore, reflecting the strong investor confidence in the company’s growth prospects.
RVNL’s impressive performance over the past year has been fueled by robust order inflows, with the company securing orders worth more than ₹2,000 crore since April. The company has set ambitious targets, aiming for an order inflow of ₹20,000-₹25,000 crore for the fiscal year.
In addition to its soaring stock price, RVNL has reported remarkable financial results, with a 33% increase in consolidated net profit to ₹478.4 crore for the March 2024 quarter. The company’s revenue from operations also saw a substantial uptick, reaching ₹6,714 crore, a 17.4% growth from the previous year.
Looking ahead, RVNL remains focused on sustaining its growth trajectory, with aspirations to maintain an order book of around ₹75,000 crore to ₹1 lakh crore. The company’s commitment to growth is underscored by its recent announcement of a final dividend of ₹2.11 per share for the financial year 2023-24, subject to shareholder approval.