21.30% Dividend: Rail Vikas Nigam Wins New Order Worth Rs 543 Crore, Stock Rallies 160% YTD

Rail Vikas Nigam (RVNL) witnessed a huge buying session on Monday with the share price rising as much as 5.5% on BSE. The company bagged new orders worth Rs 543 crore for five Elevated Metro Rail Stations. This dividend-paying railway stock will be a multi-bagger in 2023.

As per its regulatory filing, RVNL emerged as the lowest bidder for part design and construction of Elevated Viaduct, Five (5) Elevated Metro Rail Stations (viz. Shaheed Bagh, Khajrana Chauraha, Bengali Chauraha, Patrakar Colony & Palasia Chauraha) and Ramp between Chainages 31+755 to 34+898.061 & 3+669.547 to 5+862 for Indore Metro Rail Project.

The project is for a consideration of Rs 543 crore, of which, 51% is aggregated by RVNL and 49% by URC.

The project was received from Madhya Pradesh Metro Rail Corporation and is expected to be executed in 1092 days.

RVNL was incorporated as a Public Sector Undertaking for the mandate to: ​Undertake and execute successfully the project development, financing and implementation of projects related to rail infrastructure. Mobilize financial and human resources for project implementation.

On December 11, RVNL shares gained by 4.12% to end at Rs 178.25 apiece, which is nearing its day's high of Rs 180.65 apiece. The company's market cap is at Rs 37,165.48 crore.

The stock is closing its gap towards a 52-week high of Rs 199.35 apiece. YTD, the stock has skyrocketed by a whopping 160.03%. But from its 52-week low of Rs 56.15 apiece, the stock has gained by 217%.

RVNL is also among dividend-paying midcap stocks. In FY23, the company paid a dividend of up to 21.30% amounting to Rs 2.13 per share to its shareholders.