RVNL Share Price Target 2024, 2025, 2030, 2040, 2050: A Strategic Analysis

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Rail Vikas Nigam Limited (RVNL), a government-owned infrastructure giant, has garnered significant attention from investors due to its robust presence in the Indian railway sector. But what does the future hold for RVNL’s share price?

Let’s embark on a strategic analysis, navigating through the fundamentals and technicals, to unveil potential RVNL Share Price Target 2024, 2025, 2030, 2040, and 2050.

About RVNL LTD.

Rail Vikas Nigam Limited (RVNL) is an India-based company primarily focused on the development of rail infrastructure. Specializing in a range of projects such as new lines, gauge conversion, railway electrification, bridges, workshops, and production units, RVNL plays a key role in advancing the railway network.

Established in 2003, the company operates on a turnkey basis, overseeing the entire project development cycle from conceptualization to commissioning. RVNL’s project portfolio includes diverse initiatives like metro projects, major bridges, and the construction of cable-stayed bridges.

The company collaborates with central and state government ministries, departments, and public sector undertakings. Shri. Pradeep Gaur serves as the Managing Director of RVNL.

RVNL Ltd. Company Profile

CompanyRail Vikas Nigam Limited
Founded in2003 (21 years old)
OwnershipGovernment/Public Sector
India Employee Count501-1,000
Global Employee Count501-1,000
HeadquartersDelhi/NCR, Delhi, India
Office LocationsDelhi/NCR, Delhi, India
Type of CompanyGovernment/Public Sector (Govt/PSU)
Nature of BusinessB2C
Websitervnl.org

RVNL Share Price Target 2024, 2025, 2030, 2040, 2050

Fundamental Analysis

  • Strong Order Book: RVNL boasts a healthy order book exceeding ₹4.74 lakh crore, ensuring consistent revenue streams and project pipelines. This backlog, coupled with the Indian government’s focus on railway infrastructure development, paints a promising picture for the company’s growth potential.
  • Financial Performance: RVNL has displayed steady financial performance with consistent revenue and profit growth. Its healthy return on equity (ROE) and return on capital employed (ROCE) indicate efficient capital utilization and shareholder value creation.
  • Government Backing: As a government entity, RVNL enjoys several advantages, including preferential access to projects, lower financing costs, and policy support. This backing provides a safety net and fosters long-term stability.

Technical Analysis

  • Current Trend: RVNL’s share price has exhibited an upward trend in recent months, indicating investor confidence. However, short-term corrections and market volatility are to be expected.
  • Technical Indicators: Moving averages and other technical indicators suggest a bullish outlook for the stock in the near term. Key support and resistance levels need to be monitored for potential breakout or breakdown opportunities.

Also Read: Infosys Share Price Target 2023, 2024, 2025, 2030, 2040, 2050

Price Target Projections

RVNL Share Price Target 2024

Considering the current momentum and expected financial performance, a target price range of ₹550-600 seems achievable for 2024.

RVNL Share Price Target 2025

With continued project execution and potential order book expansion, the target price could climb to ₹800-1000 in 2025.

Also Read: Bajaj Auto Share Price Target 2024, 2025, 2030, 2040, 2050: A Comprehensive Analyst Report

RVNL Share Price Target 2030

By 2030, factoring in long-term growth prospects and the Indian government’s infrastructure push, a target range of ₹2000-3000 appears feasible.

RVNL Share Price Target 2040 & 2050

Looking further ahead, with ongoing railway modernization and India’s economic growth, ambitious targets of ₹5000-10000 by 2040 and ₹15000-20000 by 2050 could be possible, though subject to various external factors.

Also Read: Polycab Share Price Target 2024, 2025, 2030, 2040, 2050: A Comprehensive Analysis

RVNL Ltd. Fundamentals

CompanyRVNL Ltd.
MARKET CAP₹ 50,186.43 Cr.
ENTERPRISE VALUE₹ 54,807.16 Cr.
NO. OF SHARES208.50 Cr.
P/E36.11
P/B7.06
FACE VALUE₹ 10
DIV. YIELD0.95 %
BOOK VALUE (TTM)₹  34.09
CASH₹ 1,809.46 Cr.
DEBT₹ 6,430.19 Cr.
PROMOTER HOLDING72.84 %
EPS (TTM)₹  6.67
SALES GROWTH4.64%
ROE20.94 %
ROCE17.70%
PROFIT GROWTH16.61 %

RVNL Ltd. Share Price Chart

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rvnl_ltd_share_price_chart

RVNL Ltd. Share P/E Chart

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RVNL Ltd. Profit & Loss

RVNL Ltd.MAR 2021 (In CR.)MAR 2022 (In CR.)MAR 2023 (In CR.)
Net Sales15,403.6519,381.7120,281.57
Total Expenditure14,523.5418,200.1219,037.49
Operating Profit880.111,181.591,244.08
Other Income756.62809.261,003.94
Interest458.14563.71581.37
Depreciation22.9220.9022.27
Exceptional Items0.000.000.00
Profit Before Tax1,155.671,406.241,644.38
Tax215.13318.89376.41
Net Profit940.541,087.351,267.97
Adjusted EPS (Rs.)4.515.226.08

RVNL Ltd. Balance Sheet

Balance SheetMAR 2019 (In CR.)MAR 2022 (In CR.)MAR 2023 (In CR.)
Equity and Liabilities
Share Capital2,085.022,085.022,085.02
Total Reserves1,653.743,546.424,394.12
Borrowings3,024.206,315.426,030.58
Other N/C liabilities140.63309.30610.69
Current liabilities4,604.097,409.674,828.75
Total Liabilities11,507.6719,665.8317,949.16
Assets
Net Block279.23379.38354.60
Capital WIP8.961.201.27
Intangible WIP2.480.000.00
Investments928.841,163.051,186.64
Loans & Advances9.44217.49408.89
Other N/C Assets1,986.402,906.696,616
Current Assets8,292.3214,998.029,381.76
Total Assets11,507.6719,665.8317,949.16

RVNL Ltd. Cash Flows

PARTICULARSMAR 2021 (In CR.)MAR 2022 (In CR.)MAR 2023 (In CR.)
Profit from operations1,155.671,406.241,644.38
Adjustment-256.12324.47159.70
Changes in Assets & Liabilities-330.163,373.29-5,496.66
Tax Paid-150.42-297.83-387.48
Operating Cash Flow418.974,806.17-4,080.06
Investing Cash Flow309.53-1,462.831,353.66
Financing Cash Flow415.69-189.36-1,036.01
Net Cash Flow1,144.193,153.98-3,762.41

RVNL Ltd. Share Analysis

Analyzing a company’s financial standing can be a time-consuming task, involving a detailed examination of its profit and loss account, balance sheet, and cash flow statement. To simplify this process, investors often turn to financial ratios, which provide valuable insights into a company’s performance. Here are key tools for investors to consider:

PE Ratio (Price to Earnings):

  • PE ratio indicates how much an investor is willing to pay for a share relative to its earnings.
  • Rail Vikas Nigam’s PE ratio of 36.06 suggests it is comparatively overvalued.

Share Price:

  • Rail Vikas Nigam’s current share price is Rs 240.40.
  • Utilizing valuation calculators can help assess if the share price is undervalued or overvalued.

Return on Assets (ROA):

  • ROA measures a company’s ability to generate profits from its investment in assets.
  • Rail Vikas Nigam’s ROA of 6.74% is considered a suboptimal sign for future performance.

Current Ratio:

  • This ratio assesses a company’s ability to cover short-term liabilities with short-term assets.
  • Rail Vikas Nigam’s current ratio of 1.94 indicates stability for unexpected business and economic challenges.

Return on Equity (ROE):

  • ROE gauges a firm’s profitability from shareholders’ investments.
  • Rail Vikas Nigam’s ROE of 20.94% is considered favorable.

Debt to Equity Ratio:

  • This metric examines the capital structure and performance.
  • Rail Vikas Nigam’s D/E ratio of 0.99 indicates a low proportion of debt in its capital.

Inventory Turnover Ratio:

  • Measures how efficiently a company manages inventory.
  • Rail Vikas Nigam’s inventory turnover ratio of 372.69 reflects efficient inventory and working capital management.

Sales Growth:

  • Rail Vikas Nigam reports a revenue growth of 4.64%, signaling modest growth and performance.

Operating Margin:

  • Reflects the company’s operational efficiency.
  • Rail Vikas Nigam’s operating margin for the current financial year is 6.13%.

Dividend Yield:

  • Indicates the dividend relative to the stock price.
  • Rail Vikas Nigam’s current year dividend is Rs 2.13, with a yield of 0.92%.

RVNL Ltd. Share Strenghts and Weakness

Strengths:

  1. Robust profit growth of 17.09% over the past 3 years.
  2. Consistent and healthy Return on Equity (ROE) of 20.45%.
  3. Efficient Cash Conversion Cycle of 18.14 days.
  4. Strong promoter holding at 72.84%.
  5. Notable operating leverage, with an average standing at 3.88.

Limitations:

  1. Sluggish revenue growth of 11.76% over the past 3 years.
  2. Negative cash flow from operations at -4,080.06.

Does RVNL Ltd. Pays Dividend?

Yes, RVNL Ltd. (Rail Vikas Nigam Limited) does pay dividends to its shareholders. It has a history of paying dividends consistently over the years.

Here’s some information about their recent dividends:

2023-24:

  • Interim dividend: ₹1.77 per share, announced in March 2023 and paid on or before April 22nd, 2023.
  • Final dividend: ₹0.36 per share, announced in May 2023 and paid on September 20th, 2023.
Disclaimer: Dear Reader, Please don't consider these projections as a advice. This is based on my fundamental and technical analysis, but the actual growth of any company and stock contain many factors. So, Do your own research before taking any investment decision.

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FAQs

Q. What is the share price target of RVNL in 2025?

The RVNL Ltd. share will be expected to reach at ₹800-1000.

Q. What is the share price target of RVNL in 2030?

The RVNL Ltd. share price will be expected to reach at ₹2000-3000.

Q. When will RVNL Share reach ₹1000?

In 2025, RVNL Ltd. will be expected to reach ₹1000.

Q. When will RVNL share reach ₹5000?

In 2030 to 2035, The RVNL Ltd. will be expected to hit ₹5000.

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