Rail Vikas Nigam Limited (RVNL)
RVNL Value Pick Best stock to buy today
Company Overview
Rail Vikas Nigam Limited (RVNL) is a public sector enterprise under the Ministry of Railways, specializing in project implementation, planning, development, and execution of railway infrastructure projects. With a strong presence in India’s infrastructure growth story, RVNL remains a key player in railway modernization and expansion.
Market Metrics
Market Cap: ₹90,094 Cr
Current Price: ₹432
52-Week Range: ₹647 – ₹181
Financial Ratios
P/E: 70.4
ROCE: 18.7%
ROE: 20.4%
Performance
Sales: ₹20,310 Cr
PAT: ₹1,280 Cr
OPM: 5.66%
Future Growth and Expansion Plans
Management highlighted strategic focus areas, including new rail infrastructure projects, signaling and electrification initiatives, and international collaborations. RVNL plans a capex of approximately ₹7,000 Cr for FY25, focusing on high-speed rail corridors, station modernization, and green initiatives.
SWOT Analysis
Strengths
- Strong government backing (72.8% holding)
- Established project execution expertise
- Robust order book
Weaknesses
- Recent decline in growth metrics
- High P/E ratio (70.4)
Opportunities
- Metro and international market expansion
- Government focus on rail projects
- PPP model potential
Threats
- Rising private competition
- Project execution delays
- Government funding dependence
Valuation and Projections
Growth Projections
Revenue CAGR (FY24-27): 15%
PAT CAGR (FY24-27): 18%
Target Price: ₹520
Valuation Metrics
EV/EBITDA: 25.8x
P/B Ratio: 11.3x
PEG Ratio: 3.9
Disclaimer: This report is for informational purposes only and should not be considered as financial advice. Investors are advised to consult their financial advisors before making any investment decisions. The analysis is based on publicly available data and management commentary and may be subject to errors or omissions. Past performance is not indicative of future results.
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