Rail Vikas Nigam Limited is an Indian public sector enterprise that serves as the Ministry of Railways' construction arm for project implementation and transportation infrastructure development. It was founded in 2003 to meet the country's growing infrastructure needs and to expedite project implementation. It is a Category-I Miniratna CPSE and Public Sector Undertaking (PSU) managed by the Indian Ministry of Railways. RVNL was founded on January 24, 2003. RVNL launched its initial public offering (IPO) on March 29, 2019 and went public on April 11, 2019.
RVNL has recently made headlines for its involvement in Indian Railways' massive infrastructure expansion plan.
RVNL is a small-cap stock with a market cap of approximately 15,700 crores.
Rail Vikas Nigam (RVNL) shares have risen nearly 50% in the last six sessions. The stock has risen from 74 on April 19 to around 111 currently. So far in April, the stock has risen by more than 59 percent.
Its stock price is currently around INR 104.6. RVNL is involved in infrastructure, logistics, and transportation, and its financial performance is heavily influenced by government policies and infrastructure spending.
ANALYSIS OF RVNL STOCK
Moving Averages (DMA): The moving average is an indicator used in technical analysis to identify the direction of a stock's trend. Here are the moving averages for RVNL:
- Moving Average 20: Rs. 74.29
- Moving Average 50: Rs. 69.08
- Moving Average 200: Rs. 54.22
Based on these moving averages, we can see that the stock has been trending upward and is now trading above all three moving averages. This is a good sign because it indicates a bullish trend.
Increase in value: The value of RVNL stock has increased significantly over the last year. The stock has increased by nearly 55% in the last year as a result of a variety of factors including improved financial performance, government initiatives to modernize railway infrastructure, and increased demand for railway transportation services.
Financial Performance: As per the given data, RVNL's sales for the last financial year were Rs. 20999.0 crores, with a net profit of Rs. 1439.0 crores. The company's market capitalization is Rs. 15711.0 crore. The Return on Equity (ROE) for RVNL is 20.49%, and the Price-to-Earnings (P/E) ratio is 10.92. The Asset Turnover Ratio for RVNL is 1.27, and the leverage is 2.35. Based on these key financials, we can see that RVNL is performing well financially, and the company's valuation is undervalued.
Overall, the risk-reward is favorable for RVNL stock, and the trend is currently favorable.
RVNL reported a 30.5% increase in consolidated net profit to Rs 382.42 crore in Q3 FY23, up from Rs 293.01 crore in Q3 FY22. Its revenue from operations fell slightly to Rs 5,012.09 crore in Q3 FY23, compared to Rs 5,049.24 crore in the same quarter last year.
The organization manages project execution from conception to completion and establishes project-specific SPVs. RVNL's mandate includes the mobilization of extra-budgetary resources (EBRs) via these SPVs using a combination of equity and debt. It is an offshoot of the National Rail Vikas Yojana (NRVY) announced by then-Prime Minister Shree Atal Bihari Vajpayee from the ramparts of the Red Fort during his Independence Day speech on 15 August 2002. The Hon'ble Prime Minister formally launched NRVY on December 26, 2002, to bridge the rail infrastructure deficit.
As a whole, RVNL's business outlook appears positive, owing to the Indian government's push for infrastructure development and modernization, which may lead to positive long-term growth prospects for the company.
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