Rail Vikas Nigam Limited (RVNL) was established in 2003 by the Government of India. The company is tasked with implementing various rail infrastructure projects as assigned by the Ministry of Railways (MoR).
These projects include tasks such as doubling of tracks, gauge conversion, new line construction, railway electrification, major bridge construction, workshops, production units, and sharing freight revenue with Indian Railways under a concession agreement with the Ministry of Railways. We predict the RVNL share price target 2025 every month.
RVNL Share Price Target 2025
Based on RVNL’s robust financial performance, ongoing projects, and prospects, we project the RVNL share price target 2025 for each month. This forecast considers the company’s strong order book, successful project completions, and strategic investments.
Month | Projected Share Price (₹) |
---|---|
Jan 2025 | 635 |
Feb 2025 | 645 |
Mar 2025 | 655 |
Apr 2025 | 665 |
May 2025 | 675 |
Jun 2025 | 685 |
Jul 2025 | 695 |
Aug 2025 | 705 |
Sep 2025 | 715 |
Oct 2025 | 725 |
Nov 2025 | 735 |
Dec 2025 | 745 |
Business Overview
RVNL and its subsidiaries are primarily engaged in executing diverse rail infrastructure projects. Their portfolio includes:
- Doubling of tracks, including the construction of third and fourth lines.
- Gauge conversion and new line projects.
- Railway electrification.
- Construction of major bridges.
- Setting up workshops and production units.
Revenue Share FY23
RVNL’s revenue in FY23 was segmented into various categories:
- Non-Metro Projects: Accounted for 83% of the revenue in FY23, compared to 86% in FY20.
- Metro Projects: Contributed 9% in FY23, up from 4% in FY20.
- Zonal Railways Projects: Made up 8% of the revenue in FY23, down from 10% in FY20.
Project Completion in FY23
During FY23, RVNL completed and handed over significant projects:
- New Lines and Doubling: Commissioned 1,343 km of project length, including 119 km of new lines, 925 km of doubling, and 299 km of railway electrification.
- Metropolitan Transport Projects: Completed 863 km.
- Railway Electrification: Commissioned 299 route km (681 track km) of railway electrification.
- Metro Projects: Commissioned the Joka-Taratala (13 km) section of Kolkata Metro and the New Garia-Hemanta Mukherjee (11 km) section of the New Garia-Biman Bandar Section.
Order Book
As of Q3 FY24, RVNL’s order book stood at approximately Rs 65,000 crore. Key components include:
- Railway Projects: Rs 32,000 crore on a nomination basis.
- Vande Bharat Orders: Worth Rs 9,000 crore.
- Metro Projects: Worth Rs 7,000 crore.
Investments
RVNL’s investments as of Q2 FY24 amounted to approximately Rs 2,063 crore, primarily in joint ventures.
Contingent Liabilities
RVNL had contingent liabilities of approximately Rs 3,276 crore due to adjudications in arbitration invoked by contractors and other pending court cases.
Offer for Sale
In July 2023, the Government of India sold a 5.36% stake in RVNL through an offer for sale (OFS). Post this sale, the government’s stake stands at 72.84%.
Quarterly Financial Performance
RVNL’s financial performance over recent years highlights its operational and financial stability. Below is a summary of the quarterly results from March 2021 to March 2024:
Quarter | Sales (Rs. Crores) | Expenses (Rs. Crores) | Operating Profit (Rs. Crores) | OPM (%) | Net Profit (Rs. Crores) | EPS (Rs) |
---|---|---|---|---|---|---|
Mar 2021 | 5,578 | 5,224 | 354 | 6% | 344 | 1.65 |
Jun 2021 | 3,869 | 3,641 | 228 | 6% | 211 | 1.01 |
Sep 2021 | 4,026 | 3,799 | 227 | 6% | 222 | 1.07 |
Dec 2021 | 5,049 | 4,730 | 319 | 6% | 282 | 1.35 |
Mar 2022 | 6,438 | 6,030 | 407 | 6% | 372 | 1.78 |
Jun 2022 | 4,641 | 4,360 | 281 | 6% | 283 | 1.36 |
Sep 2022 | 4,909 | 4,593 | 316 | 6% | 299 | 1.43 |
Dec 2022 | 5,011 | 4,736 | 275 | 5% | 341 | 1.64 |
Mar 2023 | 5,721 | 5,349 | 372 | 7% | 345 | 1.66 |
Jun 2023 | 5,446 | 5,099 | 348 | 6% | 334 | 1.60 |
Sep 2023 | 4,910 | 4,613 | 297 | 6% | 370 | 1.77 |
Dec 2023 | 4,676 | 4,430 | 246 | 5% | 326 | 1.56 |
Mar 2024 | 6,701 | 6,246 | 455 | 7% | 433 | 2.08 |
Conclusion
RVNL has shown consistent performance in implementing rail infrastructure projects and maintaining a robust financial standing.
The projected RVNL share price targets 2025 reflect optimism based on current trends and potential future developments.
Investors should consider these projections while making informed decisions regarding RVNL’s stock.