RVNL main business is implementing the various types of rail infrastructure projects assigned by the more including double range gauge conversion, new line, and railway electrification and the company also built some bridges.
In this article, we are going to discuss RVNL Share Price Target 2023-2025-2030-2040-2050. Based on the company’s performance the company’s finances and some of the ratios like the P/E ratio and the current ratio will help to understand how the companies give return and future.
We also understand the company’s Balance sheet. How company’s Yearly revenue and profit from the balance sheet make a rough idea about the company? How strong company is? With the help of Intrinsic value, we can find the actual value of the stock.
RVNL (Rail Vikas Nigam)
RVNL is a central public sector enterprise that works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. It was incorporated in 2003 to meet the country’s surging infrastructural requirements and to implement projects on a fast-track basis. It is a ‘Navratna’ CPSE in India under the administrative control of the Indian Ministry of Railways.
RVNL Company Financial Overview
Company Name | Rail Vikas Nigam |
Market Cap | ₹ 28,304.15 Cr. |
Debt | ₹ 6,615.56 Cr. |
Cash | ₹ 6,785.45 Cr |
P/E | 22.32 |
Sector P/E | 30.03 |
Shares | 208.50 Cr |
52-Week High/Low | ₹ 144.40/₹ 30.55 |
ROE | 20.52 % |
Website | https://rvnl.org/ |
Company Business
- The company has a wide range of business like they have new lines to establish doubling the previous line they have that have existing only one Lane.
- The company also has a metropolitan transport project company on a project to set up metro lines and sub-burden networks in metropolitan cities.
RVNL Competitors
The following are some of the main competitors of RVNL in the Indian railway construction sector:
- Larsen & Toubro (L&T)
- Ircon International
- Afcons Infrastructure
- GMR Infrastructure
- NCC Limited
- Tata Projects
- JMC Projects
- Sadbhav Engineering
- KEC International
- ITD Cementation
- Ashoka Buildcon
- Dilip Buildcon
These companies compete with RVNL for contracts to construct new railway lines, gauge convert existing lines, double existing lines, electrify railway lines, and construct bridges.
RVNL is the largest railway construction company in India, with a strong track record of delivering projects on time and within budget. However, the company faces stiff competition from other well-established and experienced players in the industry.
In addition to the above-mentioned companies, RVNL also faces competition from foreign companies that are bidding for railway construction projects in India. Some of the foreign companies that are competing with RVNL include:
- China Railway Construction Corporation (CRCC)
- Alstom
- Bombardier
- Siemens
- Hitachi
The increasing competition in the Indian railway construction sector is putting pressure on RVNL to maintain its cost competitiveness and improve its execution capabilities. However, RVNL’s strong track record and its status as a public sector enterprise give it a competitive advantage in the market.
The Rvnl stock has been performing well in the market in the past 1 month with returns of 10.38% and in the past 3 returns of 76.32% which is really nice. And if you see the P/E ratio that is also only 20.06 and 20 P/E ratio is considered to be good. Because it reflects the company’s stock to Price to price-to-earnings ratio.
Industry P/E is 28.5 and stock has 20 P/E so stock is undervalued. RVNL Share Price Target in 2023 minimum is Rs 180 and maximum is Rs 213.
RVNL past 1-year stock is +342% if the stock gives the same return in the next 2 years then the stock price can move to Rs 520. And the company also has a strong order book. The order book consists of 52,000 crores. In the future, Rvnl Will receive more orders. Hence company’s Total revenue will Increase.
In FY2023 RVNL company revenue is Rs 21,436.64 Crores. Past 5 years revenue has grown at a yearly rate of 22.01%, vs. an industry average of 10.76%. which can consider stable returns from stock. RVNL Share Price Target 2025 by minimum is Rs 80 and a maximum is Rs 180.
RVNL has a subsidy called High-Speed Rail Corporation India Limited which was incorporated for undertaking primary feasibility studies and implementation of the high-speed corridor in India to run passenger trains up to 350 km per hour. As you know Indian railway needs to more develop.
RVNL company can have a good Advantage because own by the government of India. Rvnl share price target 2030 minimum is Rs 200 and the maximum is Rs 800.
Company net profit increased to 1,421 Crores. Company sales also increased in part 3 year the rate of increase in sales was 12%. Is the company continuously increasing its sales and generating a profit?
Five-year compounding sales growth is 22% and the compounded profit growth of a company in the past year is 23% which is considered to be really good and the past five years is 20% if you see the stock CAGR that is crazy. The last year is 283% and in the last three years it is 100%. Then RVNL share price in 2040 target is ₹1250 to ₹1350.
Company revenue grew by 12.01% versus the industrial average of 10.76% in the past 5 years. In the past 5 years, the market share has increased from 7.59% to 12.32%. RVNL’s share price till 2050 could reach Rs 2100 to Rs 2200.
Years | Minimum Target | Minimum Target |
2023 | Rs 50 | Rs 213 |
2025 | Rs 80 | Rs 180 |
2030 | Rs 700 Approx | Rs 800 Approx |
2040 | Rs 1100 Approx | Rs 1350 Approx |
2050 | Rs 1900 Approx | Rs 2200 Approx |
Strength
- The company has delivered good profit growth of 20.3% CAGR over the past 5 year
- Company ROE is 20.7%
- The dividend yield is 1.3%
Weaknesses
- The total retail holding is increased by 1.05%
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Personal Opinion
Yes, the stock is giving a good return but this is not a perfect time for an entry because the stock is already moving high and trading to ITS 52 week High. Wait for a little bit of correction in the stock and then it may be a good entry point in the stock.
Conclusion
The company’s finances are stable and the financial of the company is also very good Operation efficiency is very good. The other expectation of a company is also a good company maintain a good order book. Yes, the stock can be an invisible stock but wait for the good entry point.
Disclaimer
Any target mentioned on this website is taken by our personal analysis, and we are not SEBI registered advisors, our objective is only to provide detailed information related to the company’s business to the public. Investors should conduct their own research and analysis and consult with financial experts before making any investment decisions.
FAQ
Is RVNL a good stock
Yes RVNL is a good stock, the returns of the stock are very impressive.
What is the future of Rvnl share?
Based on the past return and past company balance sheet the future of the share is bright.
What is the dividend yield of RVNL?
1.3% is the dividend of the stock.
Does RVNL pay a dividend?
Yes RVNL pays a dividend
What will be the RVNL share Price Target 2025?
Rvnl share price target 2025 by minimum is Rs 80 and a maximum is Rs 180.
What will be the RVNL share Price Target 2030?
Rvnl share price target 2030 minimum is Rs 200 and the maximum is Rs 800.
What is the intrinsic value of RVNL stock?
intrinsic value of RVNL stock 73.2.