Rail Vikas Nigam Limited (RVNL), a crucial player in India’s infrastructure boom, has seen its stock price skyrocket in recent months. Analysts are optimistic about RVNL’s prospects fueled by robust government spending and strategic diversification, are now painting a bullish picture for the company’s future. Let’s analyse what RVNL Share Price Target holds for.
RVNL Company Overview
Rail Vikas Nigam Limited (RVNL) is a public sector undertaking (PSU) under the Ministry of Railways in India. Established in 2003, it plays a crucial role in developing and upgrading railway infrastructure across the country. Here’s a brief overview of RVNL:
Business Activities:
- Developing new railway lines: RVNL undertakes project execution for constructing new railway lines, doubling existing tracks, electrification, and gauge conversion.
- Building dedicated freight corridors: They are dedicated high-speed corridors for freight traffic, aiming to improve efficiency and logistics.
- Station redevelopment: RVNL renovates and modernizes railway stations across India, enhancing passenger experience.
- Other projects: They also undertake infrastructure projects like bridges, tunnels, and workshops for the railways.
Financial Performance:
- RVNL has demonstrated consistent revenue growth and profitability over the years.
- The company maintains a healthy order book, providing visibility for future revenue streams.
- The debt-to-equity ratio is manageable, indicating prudent financial management.
RVNL Fundamental Analysis (As on February 2024)
| Market Cap | ₹ 64,271 Cr. |
| Current Price | ₹ 308 |
| 52-wk High | ₹ 346 |
| 52-wk Low | ₹ 56.0 |
| Stock P/E | 43.5 |
| Book Value | ₹ 37.9 |
| Dividend | 0.68 % |
| ROCE | 17.8 % |
| ROE | 20.8 % |
| Face Value | ₹ 10.0 |
| EPS | ₹ 7.09 |
| Debt | ₹ 5,981 Cr. |
| Debt to Equity | 0.76 |
RVNL Share Price Target 2024
Shares of Rail Vikas Nigam Limited (RVNL) have skyrocketed over 60% in January, attracting sustained investor interest. However, Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, warns that the stock needs to conquer the resistance level of Rs 350 to unlock the next leg of its ascent. He identifies Rs 250 as a crucial support level, a breach of which could dent the current bullish sentiment.
RVNL’s Relative Strength Index (RSI) is flashing overbought signals, indicative of aggressive buying during breakouts. “The daily price action highlights strong buying interest during healthy corrections,” explains Bagkar. “A breakout above Rs 350 could propel the stock towards Rs 400-450 levels.”
| RVNL Share Price Target | Minimum Targets | Maximum Targets |
| February | ₹321.97 | ₹349.53 |
| March | ₹326.04 | ₹360.00 |
| April | ₹352.41 | ₹373.28 |
| May | ₹359.82 | ₹383.37 |
| June | ₹356.72 | ₹403.68 |
| July | ₹373.92 | ₹406.89 |
| August | ₹384.51 | ₹421.07 |
| September | ₹396.42 | ₹437.32 |
| October | ₹398.18 | ₹440.93 |
| November | ₹426.14 | ₹470.34 |
| December | ₹428.43 | ₹463.67 |
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RVNL Share Price Target 2025
According to current market analysis (RVNL Share Price Target), the company’s stock price can reach Rs. 560 (considering an average of Rs. 460 in December 2024 and last year ROE @21%) per share by the end of 2025.
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RVNL Share Price Target 2026
| 2026 | Minimum Targets | Maximum Targets |
| January | ₹560.26 | ₹625.76 |
| February | ₹559.15 | ₹628.15 |
| March | ₹570.41 | ₹635.94 |
| April | ₹584.87 | ₹651.37 |
| May | ₹581.00 | ₹669.66 |
| June | ₹609.85 | ₹680.71 |
| July | ₹619.02 | ₹685.25 |
| August | ₹622.73 | ₹703.60 |
| September | ₹633.27 | ₹717.94 |
| October | ₹647.06 | ₹725.48 |
| November | ₹650.23 | ₹748.06 |
| December | ₹665.96 | ₹756.29 |
RVNL Share Price Target 2027
| 2027 | Minimum Targets | Maximum Targets |
| January | ₹675.63 | ₹769.80 |
| February | ₹680.57 | ₹774.00 |
| March | ₹694.74 | ₹784.44 |
| April | ₹707.49 | ₹800.13 |
| May | ₹721.92 | ₹821.00 |
| June | ₹722.21 | ₹822.22 |
| July | ₹724.32 | ₹838.81 |
| August | ₹741.09 | ₹856.29 |
| September | ₹755.62 | ₹863.33 |
| October | ₹760.25 | ₹869.06 |
| November | ₹784.66 | ₹900.71 |
| December | ₹770.62 | ₹909.25 |
RVNL Share Price Target 2028
| 2028 | Minimum Targets | Maximum Targets |
| January | ₹802.17 | ₹916.96 |
| February | ₹808.16 | ₹934.02 |
| March | ₹797.66 | ₹938.19 |
| April | ₹826.10 | ₹964.44 |
| May | ₹840.63 | ₹968.63 |
| June | ₹842.01 | ₹983.44 |
| July | ₹854.97 | ₹1,002.36 |
| August | ₹860.92 | ₹1,001.30 |
| September | ₹869.36 | ₹1,024.75 |
| October | ₹887.37 | ₹1,044.77 |
| November | ₹899.29 | ₹1,052.85 |
| December | ₹906.48 | ₹1,066.03 |
RVNL Share Price Target 2030
| Months | Targets |
| January | ₹1400 |
| February | ₹1415 |
| March | ₹1429 |
| April | ₹1435 |
| May | ₹1445 |
| June | ₹1456 |
| July | ₹1465 |
| August | ₹1472 |
| September | ₹1482 |
| October | ₹1495 |
| November | ₹1500 |
| December | ₹1532 |
RVNL Share Price Target 2023, 2024, 2025, to 2030
| Year | Minimum Targets | Maximum Targets |
| 2023 | ₹180 | ₹195 |
| 2024 | ₹428.43 | ₹463.67 |
| 2025 | ₹539.69 | ₹602.75 |
| 2026 | ₹620 | ₹755 |
| 2027 | ₹770.62 | ₹909.25 |
| 2028 | ₹1000 | ₹1165 |
| 2029 | ₹1200 | ₹1390 |
| 2030 | ₹1400 | ₹1812.39 |
It’s important to remember that these are just estimates, and the actual share price could be higher or lower than these targets:
- Risks: Unforeseen events like economic downturns, policy changes, or project delays could negatively impact RVNL’s performance and share price.
- Opportunities: Conversely, positive developments like increased government infrastructure spending or new project wins could boost the share price beyond expected targets.
Why RVNL Share Price Increased Recently?
The recent increase in RVNL share price can be attributed to a combination of several factors:
Strong Growth Prospects:
- Order Book Boom: RVNL has secured several high-value projects in recent months, including the Chennai Metro Rail Phase-II and irrigation projects. This strong order book signifies future revenue growth and profitability. The order book of RVNL, as on March 31, 2023, was around Rs 57,000 crore. RVNL recently received two orders from Madhya Kshetra Vidyut Vitaran Co. in Jabalpur. In the recent past, the company bagged a Rs 3,000 crore order from Chennai Metro for three underground packages where 16 metro stations were required to be constructed.
- Government Support: The Indian government’s focus on infrastructure development, particularly railways and irrigation, bodes well for RVNL as a key player in these sectors. Potential increased budget allocation for railways can further boost sentiment.
- Diversification: RVNL is venturing beyond railway projects into other infrastructure areas like irrigation and renewable energy. This diversification mitigates sector-specific risks and opens up new avenues for growth.
Financial Performance:
- Positive Quarterlies: RVNL has consistently delivered strong financial performance in recent quarters, with steady revenue and profit growth. This demonstrates operational efficiency and investor confidence.
- Navratna Status: The recent conferment of “Navratna” status by the Department of Public Enterprises recognizes RVNL’s operational excellence and strengthens its brand image, potentially attracting more investors.
Market Sentiment:
- Bullish Market: The overall Indian stock market has been performing well in recent months, with positive investor sentiment impacting all sectors, including infrastructure.
- Infrastructure Stocks Rally: There’s a general upward trend in infrastructure stocks, with RVNL benefiting from this sector-specific buoyancy.
What is the Future of RVNL Shares?
- The Indian government’s focus on infrastructure development, particularly railways, bodes well for RVNL’s growth prospects.
- The dedicated freight corridors and station redevelopment projects offer significant opportunities for the company.
- RVNL’s strong presence in the railway sector and its expertise in project execution position it well to capture a larger market share.
RVNL Shareholding Pattern
| Mar-19 | Mar-20 | Mar-21 | Mar-22 | Mar-23 | Dec-23 | |
| Promoters | 100.00% | 87.84% | 78.21% | 78.20% | 78.20% | 72.84% |
| FIIs | 0.00% | 0.55% | 0.42% | 0.84% | 1.53% | 2.59% |
| DIIs | 0.00% | 2.61% | 9.43% | 8.33% | 6.51% | 6.08% |
| Public | 0.00% | 9.00% | 11.94% | 12.63% | 13.76% | 18.50% |
RVNL Last 5 Years Performance Analysis
| Mar-19 | Mar-20 | Mar-21 | Mar-22 | Mar-23 | TTM | |
| Sales | 10,069 | 14,531 | 15,404 | 19,382 | 20,282 | 21,218 |
| Expenses | 9,538 | 13,757 | 14,524 | 18,199 | 19,035 | 19,920 |
| Operating Profit | 531 | 773 | 880 | 1,183 | 1,247 | 1,297 |
| OPM % | 5% | 5% | 6% | 6% | 6% | 6% |
| Other Income | 366 | 246 | 808 | 831 | 1,155 | 1,208 |
| Interest | 52 | 41 | 458 | 564 | 581 | 572 |
| Depreciation | 6 | 20 | 23 | 21 | 22 | 23 |
| Profit before tax | 839 | 958 | 1,207 | 1,430 | 1,798 | 1,910 |
| Tax % | 18% | 21% | 18% | 22% | 21% | |
| Net Profit | 688 | 757 | 992 | 1,110 | 1,421 | 1,479 |
| EPS in Rs | 3.3 | 3.63 | 4.76 | 5.32 | 6.81 | 7.09 |
Disclaimer: The information provided on this website is for general informational purposes only and should not be construed as financial advice, investment recommendations, or guarantees of any kind. This information is not intended as a substitute for professional financial advice. You should always seek the advice of a qualified financial advisor before making any investment or financial decisions.
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