RVNL Bags Rs 5546 Crore NHAI Order; Order Book Hits Rs 97,000 Crore
Rail Vikas Nigam Limited (RVNL), a leading infrastructure PSU, has bagged a significant order worth Rs 5,546.48 crore from the National Highway Authority of India (NHAI). The contract involves the construction of a 6-lane access-controlled road to Visakhapatnam Port in Andhra Pradesh under the Hybrid Annuity Mode (HAM). With this win, RVNL’s robust order book has soared to an impressive Rs 97,000 crore, reaffirming its position as a key player in India’s infrastructure development.
Project Details: Enhancing Visakhapatnam Port Connectivity
12.66 KM Access-Controlled Highway Project
RVNL has received a Letter of Acceptance (LoA) for constructing a 12.660 km stretch of NH 516C, connecting Sabbavaram Bypass (Km 0.000) to Sheelanagar Junction (Km 12.660). The project, listed under NIT No. NHAI/AP/Tech/Sabba.-Sheela./NH516C/2024, aims to improve logistics and transportation infrastructure around Visakhapatnam Port.
- Project Value: Rs 5546.48 crore (excluding GST)
- Completion Timeline: 730 days
- Execution Mode: Hybrid Annuity Mode (HAM)
Company Overview: Rail Vikas Nigam Limited (RVNL)
Established in 2003 by the Government of India, RVNL is a Navratna company under the Ministry of Railways. It is engaged in executing high-value projects across railways, metros, and international infrastructure sectors.
Strong Fundamentals and Financial Performance
- 5-Year Profit CAGR: 21%
- Dividend Payout Ratio: 33.4%
- Return on Equity (ROE): 21%
- Return on Capital Employed (ROCE): 19%
- Market Capitalization: Over Rs 75,000 crore
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Quarterly and Annual Performance Snapshot
Q3 FY25 Results:
- Net Sales: Rs 4,591 crore (↓ 2% YoY)
- Net Profit: Rs 295 crore (↓ 10% YoY)
FY24 Annual Performance:
- Net Sales: Rs 21,889.23 crore (↑ 8% YoY)
- Net Profit: Rs 1,469.53 crore (↑ 16.5% YoY)
Despite a slight dip in quarterly numbers, the annual performance reflects a strong growth trajectory.
Investor Interest and Shareholding Pattern
RVNL’s stock has delivered multibagger returns, surging 470% in 2 years and an astonishing 2,500% in 5 years, attracting investor attention.
- FII Holdings (Dec 2024): 5.10% (↑ from Sept 2024)
- President of India’s Stake: 72.84%
- LIC’s Stake: 5.81%
The consistent growth, healthy fundamentals, and strong project pipeline make RVNL a promising stock in the infrastructure space.
Conclusion: A Promising Infrastructure Powerhouse
With a new Rs 5,546 crore project and a robust Rs 97,000 crore order book, RVNL continues to emerge as a critical driver of India’s infrastructure growth. Its ability to consistently secure high-value projects and maintain solid financials positions it as a compelling investment opportunity in the long term. Investors and market watchers should keep a close eye on this stock for potential future gains.
FAQs
Q1. What is the value of the latest RVNL project from NHAI?
RVNL secured a Rs 5,546.48 crore project for constructing a 6-lane access-controlled road in Andhra Pradesh.
Q2. What is the total order book value of RVNL?
As of December 2024, RVNL’s order book stands at Rs 97,000 crore.
Q3. How has RVNL stock performed in recent years?
RVNL stock has delivered 470% returns in 2 years and 2,500% in 5 years, making it a multibagger.
Q4. What is Hybrid Annuity Mode (HAM)?
HAM is a hybrid model where the government and the contractor share project financing. The government pays 40% during construction, and the rest is paid over time as annuity.
Q5. Who are the major shareholders of RVNL?
The President of India holds a 72.84% stake, and LIC holds 5.81% as of December 2024.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice or stock recommendations. Investors are advised to do their own research or consult with a qualified financial advisor before making any investment decisions.
