RVNL stock jumps nearly 4% on strong Q4 results; PSU stock skyrockets 922% in one year
Shares of Rail Vikas Nigam Ltd (RVNL) extended gains for the fifth straight session, jumping nearly 4 percent on May 18, a day after the company reported a positive set of numbers for the quarter ended March 2024.
The state-run railway company’s net profit rose 33.2 percent on-year to Rs 478.6 crore, with healthy topline as well as operating numbers. Its revenue from operations during the quarter under review grew 17.4 percent YoY to Rs 6,714 crore.
At the operating level, RVNL’s EBITDA in Q4FY24 rose 21.8 percent YoY to Rs 456.4 crore over Rs 374.6 crore in year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation.
The EBITDA margin came in at 6.8 percent in the reporting quarter, up from 6.6 percent in the corresponding period in the previous fiscal.
There are actually two recent reasons why RVNL stock might have jumped nearly 4% on May 21st, 2024:
-
Strong Q4 Results: On May 20th, RVNL reported a 25% year-on-year increase in its net profit for Q4FY24 [Economic Times]. This positive financial performance could have boosted investor confidence and led to a rise in stock price.
-
New Project Win: Around the same time, RVNL also announced that they emerged as the lowest bidder for an Indian Railways project worth over ₹440 crore [Mint]. Securing new projects is positive news for a construction company like RVNL, potentially leading to increased revenue and justifying a higher stock valuation.
It’s important to note that stock prices fluctuate based on various factors, and these are just two of the possible explanations for the 4% jump. To be certain about the exact cause, you’d need to look at real-time market news and analysis for RVNL on May 21st, 2024.