In this article, we will dive deep into the analysis of Rail Vikas Nigam Limited (RVNL) company and its stock price and try to forecast what is the target price of RVNL in 2025 to 2040? RVNL has played a key role in the infrastructure development of the Indian railways, now this makes this company quite important and investors would try to understand the future of RVNL so they can invest in it accordingly. Let’s start with what would be the predicted price target of RVNL in 2025 and beyond and then discuss various factors behind it.
Table of Contents
RVNL Share Price Target 2024, 2025, 2026, 2030, 2032, 2035 and 2040
RVNL touched an all-time high this year so it is unlikely it will go beyond that and may trade around 200 only in 2024.
| Year | Minimum Price Target | Maximum Price Target |
|---|---|---|
| 2024 | 200 | 220 |
| 2025 | 225 | 250 |
| 2026 | 240 | 270 |
| 2030 | 330 | 370 |
| 2032 | 360 | 400 |
| 2035 | 450 | 500 |
| 2040 | 650 | 700 |
About Rail Vikas Nigam Limited (RVNL)
RVNL is a public sector enterprise company which involved in the construction of the infrastructure projects assigned by the Ministry of Railways in India. It was started in 2003 with the aim of fast-track construction of the infrastructure of the Railways. Some of the work are construction of new lines, doubling the existing ones, converting the gauge line, electrification, etc. It is one of the Navratna company.
Fundamental of The RVNL
- Market Cap – ₹37,124 Cr.
- Current Price – ₹178
- 52 Week High – ₹199.25
- 52 Week Low – ₹56.05
- Stock P/E – 25.1
- Book Value – ₹ 37.9
- Dividend Yield – 1.20 %
- ROCE – 17.8 %
- ROE – 20.8 %
- Face Value – ₹ 10.0
Profit and Loss sheet
| Particulars | Mar-19 | Mar-20 | Mar-21 | Mar-22 | Mar-23 |
| Sales | 10,069 | 14,531 | 15,404 | 19,382 | 20,282 |
| Expenses | 9,538 | 13,757 | 14,524 | 18,199 | 19,035 |
| Operating Profit | 531 | 773 | 880 | 1,183 | 1,247 |
| OPM % | 5% | 5% | 6% | 6% | 6% |
| Other Income | 366 | 246 | 808 | 831 | 1,155 |
| Interest | 52 | 41 | 458 | 564 | 581 |
| Depreciation | 6 | 20 | 23 | 21 | 22 |
| Profit before tax | 839 | 958 | 1,207 | 1,430 | 1,798 |
| Tax % | 18% | 21% | 18% | 22% | 21% |
| Net Profit | 688 | 757 | 992 | 1,110 | 1,421 |
| EPS in Rs | 3.3 | 3.63 | 4.76 | 5.32 | 6.81 |
| Dividend Payout % | 27% | 31% | 33% | 34% | 31% |
Findings from the tables
- From the above figures, we can see that the P/E of the stock is somewhat around the industry P/E of the company which is a good sign.
- The stock has touched an all-time high this year, which shows that the company has the potential to grow at a faster rate if everything goes smoothly.
- Revenue of the company is also increasing every year which means they are on the right trajectory and it is safe to assume that it will increase even further.
- Profit is also increasing yearly, again an auspicious sign for the company.
- RVNL is showing overall good signs of growth at a significant rate and investing in this company would bring good things to the investor.
Industry Analysis
India is still growing at a very high speed, which means infrastructure is still building and railways have always played a major role in the development of this country. So it is evident that RVNL has good potential in the near future also to grow and give good returns to the investors.
Also Read: Kritika Wires Share Price Target 2025
Peer Comparision
If we do the comparison, then we can see RVNL is doing good compared to its peers in the industry. Some of the peers like NCC ltd. and G R Infra are also performing well as I said construction industry is still growing, RVNL would still be best bet among all.
Company Growth Prospect
- RVNL has many ongoing projects which shows the company will still grow at a steady speed.
- RVNL has also won many bids in Joint ventures which include metro construction among other works.
- RVNL has formed a joint venture with a Russian company to build 120 high-speed Vande Bharat trains.
- RVNL also formed JVs in Maldavies and Kyrgyzstan to start international work, which is a promising sign.
200 Days Moving Average
The current 200 DMA is around 130 and the stock is trading around 176, which may indicate that the stock is trading at a high value and may seem it is an overvalued stock and if we consider the 200 DMA parameter then it wouldn’t be wise to buy this stock. But from the past year, we can notice that RVNL is trading higher than the 200 DMA and it is still following the trend.
Wait for the right entry point to invest in the RVNL stock and grab the opportunity when it arrives.
What Is The Target Price Of RVNL In 2024?
If we follow the current trend then this stock will continue to grow, but as this stock has achieved an all-time high this year, it will likely be trading around the same in 2024. It may trade between 200 to 220 in 2024.
What Is The Target Price Of RVNL In 2025?
If we see the future project and of it follows the current trend then we can estimate that RVNL can trade between 225 to 250 in 2025.
What Is The Target Price Of RVNL In 2030?
By 2030, with the current project and international project in the future, we can estimate that it can trade between 330 to 370 in 2030.
What Is The Target Price Of RVNL In 2035?
It is very difficult to predict what will happen in 2035 but if RVNL continues to perform well in the future as well then we can estimate that RVNL can trade somewhere around 450 to 500 in 2035.
What Is The Target Price Of RVNL In 2040?
Again it would be very difficult to predict and by 2040 it would depend on various factors, but if we have to make an educated guess then we can estimate RVNL can trade somewhere around 650 to 700 in 2040. It may very well go beyond that if it continues the good work and follow the current trend.
Conclusion
If I have to conclude about RVNL then I would say RVNL is a fundamentally sound company and has shown promising signs in the past and growing at steady speed. Being one of the Navratra companies, it is safe to assume that it has the potential to grow even further in the future and investors can expect good things if they decide to invest in RVNL.
Disclaimer
Information provided in this article is my personal opinion and it is for general informational purposes only and should not be considered as financial advice. Investing involves risks, and individuals should conduct their own research or consult with a qualified financial professional before making any investment decisions. Past performance is not indicative of future results, and the content provided is subject to change without notice. We do not guarantee the accuracy or completeness of the information and disclaim any liability for financial decisions made based on this content.
FAQs
Is RVNL overpriced?
Some parameters have shown that RVNL is overpriced but it has been overpriced since last year and still share price is increasing.
Is RVNL a good company to invest?
RVNL is a fundamentally sound company and it has given over 150% return in the past year, it has good growth plans for the future and it would be wise if you choose to invest in this company.
Who owns RVNL?
RVNL is a public sector enterprise and the President of India has a holding of 72.84% shares.
Can RVNL be a multi-bagger?
RVNL has given good returns in the past and proved to be a multi-bagger, if it follows the trend then it can be a multi-bagger in the future as well.
What is the target of RVNL in 2030?
If RVNL follows the current trend then it can trade between 330 to 370.