About Rail Vikas Nigam Limited (RVNL)

Rail Vikas Nigam Limited (RVNL) is a premier Government of India enterprise, incorporated in 2003 under the Companies Act, 1956. With its headquarters in New Delhi, the company operates through over 15 project implementation units across India.

The primary objectives for establishing RVNL were to mobilize financial resources for the expansion of the railway network, implement railway projects, and plan and execute projects catering to the economy’s rail infrastructure needs.

Here are some key facts about Rail Vikas Nigam Ltd:

• It is wholly owned by the Government of India under the Ministry of Railways.
• The Minister of Railways chairs it, and its Board includes senior railway officials.
• The company has an authorized share capital of ₹20,000 crores.
• RVNL undertakes various projects such as new rail lines, doubling projects, gauge conversion, electrification, metro projects, and more.
• It adopts financial models like BOT (Build-Operate-Transfer) for project implementation.
• Since its inception, RVNL has executed over 300 projects across various states.
• Its key clientele comprises Indian Railways, various state governments, and private entities.
• The company has constructed over 5500 km of rail route length to date.
• The order book is over over ₹61,000 crores, which showcases strong sales of the company.

In essence, RVNL functions as an extension of the Indian Railways, specializing in mobilizing finances and implementing railway infrastructure projects in line with the nation’s requirements. It combines the assurance of governmental backing with the agility of the private sector.

Rail Vikas Nigam Limited (RVNL) Price History

Rail Vikas Nigam Ltd was listed on the stock exchanges in April 2019 with an issue price of ₹19 per share. The IPO was oversubscribed more than 100 times. On the listing day, the RVNL share price surged, closing at around ₹25, which was approximately 32% above the issue price.

In the subsequent months, the RVNL share price climbed steadily in tandem with the bull market, reaching an all-time high of ₹47 in December 2019. However, like the broader markets, the stock experienced a correction during the Covid-19 crash in early 2020, with the share price plummeting to ₹14 by May 2020.

As infrastructure projects regained momentum, the RVNL stock rebounded, with the share price revisiting the ₹40 mark in early 2021. However, volatility persisted throughout 2021-22 due to fluctuating market conditions.

In 2023, the situation for RVNL shifted dramatically as the stock surged by over 300%, reaching around 140 in May. Then, It further climbed to Rs.189 by September 2023. Even in 2023, the stock experienced fluctuations, which was due to significant investments by Indian Government in the railways for the upcoming years. These investments included plans to construct new lines, upgrade the existing infrastructure, and electrify the railway network. At present, the RVNL share price hovers around ₹155.

Below is the price history of RVNL, which shows the stock performance since its inception year-over-year.

RVNL Dividend History

Since FY2019-20, RVNL has consistently distributed dividends to its shareholders. The dividend record is as follows:

This consistent dividend payout shows RVNL’s financial position and its commitment to rewarding shareholders. The increasing dividend per share over the years suggests enhanced profitability and promising prospects for the future.

Rail Vikas Nigam Ltd (RVNL) Financials & Earnings

Rail Vikas Nigam Ltd (RVNL) has strong financial numbers, which is underlined by Its market capitalization of ₹3,284.9 crores. When we look at how much profit it makes from its business, the company keeps a profit margin of 6.91%, with its operating margin at 6.17% for the past year. These figures highlight RVNL’s ability to efficiently manage its operations and generate profits.

Looking at the earnings, RVNL made ₹2,121.2 crores in the last twelve months. From this, it had a profit of ₹255.8 crores and an EBITDA of ₹134.4 crores, which reflects that the company can generate substantial revenue while maintaining a healthy profit margin.

If we compare the company’s earnings from 2021 to the last year, the company’s total revenue has seen a steady climb from ₹1,540.38 crores to ₹2,121.24 crores. Similarly, the gross profit has also witnessed an upward trend, moving from ₹117.44 crores in 2021 to ₹164.11 crores in the trailing twelve months. This steady increase in revenue and profit shows RVNL’s resilience and its ability to thrive in the dynamic railway infrastructure sector.

Rail Vikas Nigam Ltd (RVNL) Share Price Target

According to short-term forecast, the share price can hit between ₹163 and ₹175 by the end of 2023, around 185 in 2024.And, If you look at long-term outlook, the RVNL share can rise to ₹250 in 2028, and ₹300 in 2030. Let’s delve this into detail.

Rail Vikas Nigam Ltd (RVNL) Share Price Target 2023

By 2023, RVNL’s share price is projected to lie between ₹163.34 and ₹175.65, marking a potential change of around +4.02%. This optimistic forecast is primarily driven by the Ministry of Railways’ recent plan. The ministry is gearing up to seek Cabinet approval for a massive ₹5.25 lakh crore investment program spanning from 2024 to 2031. This initiative aims to enhance rail connectivity to pivotal regions like mining areas, cement plants, and major consumption points, all aligned with the PM Gati Shakti National Master Plan. Such strategic moves are expected to provide a significant boost to RVNL.

Rail Vikas Nigam Ltd (RVNL) Share Price Target 2025

Heading into 2025, RVNL’s share price is anticipated to range between ₹190.56 and ₹213.89, reflecting a growth of approximately 36.12%. Two significant developments underpin this prediction. Firstly, RVNL recently secured two substantial orders from the Gujarat Metro Rail Corporation, indicating the company’s growing influence and operational capabilities in the railway sector. Secondly, the company’s financials are strong, which further solidifying its position in the market and make it a promising prospect for investors.

Rail Vikas Nigam Ltd (RVNL) Share Price Target 2030

By 2030, analysts suggest that RVNL’s share price could oscillate between ₹274.34 and ₹315.56, translating to an impressive growth of about 100.9%. This bullish outlook can be attributed to the anticipated expansion of India’s railway infrastructure. And, This will lead to increase in demand for railway services, which will definitely benefit Rail Vikas Nigam Ltd, leading to surge in the stock price.

Rail Vikas Nigam Ltd (RVNL) Share Price Target 2040

Fast-forwarding to 2040, RVNL’s share price is expected to lie between ₹330.45 and ₹380.67, marking a substantial rise of 142.2%. This period will likely witness a transformation in India’s railway sector, with advancements in technology, sustainable practices, and increased connectivity. And, Since this is a Govt. company, This will further keep Rail Vikas Nigam at the forefront of this evolution, which will drive its share prices upwards.

Rail Vikas Nigam Ltd (RVNL) Share Price Target 2050

By the mid-century mark in 2050, RVNL’s share price is predicted to range from ₹392.56 to ₹453.78, showcasing a phenomenal growth of 188.9%. Here, the company will play a crucial role since it long term strategies and alignment with national objectives will likely keep them as a dominant player in the railway sector.

RVNL Share FAQs

Is RVNL a good long-term stock to buy?

RVNL appears to be a good long-term investment if you look at its stable financial performance, strong order book, and positive industry outlook. The company is is in a good position to gain from India’s infrastructure growth. Also, the Indian government is heavily investing in the railway infrastructure system to expand the railway network. So, this will definitely benefit Rail Vikas Nigam Ltd in the long run.

Is Rail Vikas Nigam Limited Private or Government?

Despite having the word ‘Limited’ in its name, RVNL is not a private limited company. It is fully owned by the Government of India and is under the administrative control of the Ministry of Railways. The company collaborates closely with the zones of Indian Railways, as well as various state governments and private entities in the infrastructure sector.

While RVNL boasts an independent board of directors and professional management, the Government retains full authority over appointments to the RVNL board. The company’s board is chaired by the railways minister. Thus, RVNL operates as an extended Public Sector Undertaking (PSU) under the ownership of the Government of India, with a distinct mandate for railway infrastructure development.

What is the dividend history of RVNL?

RVNL has consistently paid dividends since FY 2019-20. The dividend per share has grown from ₹0.09 in 2019-20 to ₹0.35 in FY 2022-23.

What is RVNL’s face value and market capitalization?

The market capitalization of Rail Vikas Nigam Ltd is around ₹3,300 crores.

Who are the major clients of Rail Vikas Nigam Ltd?

The key clients are Indian Railways, various state governments, and private entities. Since its inception, RVNL has executed over 300 projects across 21 states.

Does RVNL have high debt on its balance sheet?

No, RVNL follows a prudent debt policy. The debt-to-equity ratio stands at 0.99 as per latest annual report.

What is RVNL’s order book position?

As of FY23, the company’s order book stood at a robust ₹65,177 crores providing multi-year revenue visibility.

Is RVNL profit making or loss making?

RVNL has been consistently profitable since listing in 2019. Revenues and profitability have grown at a healthy pace over the years.