About RVNL
Railway Vikas Nigam Limited (RVNL) is a Government Company. Its role is to meet the developement requirement of engineering works for Indian Railways.
Along with this, it also does important work like raising money for the railways. 96 percent of the revenue of this company comes from the railways.
This company also works for all the new projects of Indian Railways, such as laying of new lines, electrification work, doubling, gauge replacement and metro trains.
Golden Quadrilateral
RVNL is also working on the Golden Quadrilateral and other expansion plans under the Rashtriya Rail Vikas Yojana. The program includes projects related to capacity expansion of the Golden Quadrilateral and its sides, last mile port connectivity and Western Sector Corridors. The special thing is that this company is also working to raise funds for all the projects.
The order book of Railway Vikas Nigam Limited is very strong. It also has a subsidiary company HSRC. This company works on Diamond Quadrilateral (Diamond Quadrilateral Project). Under this project, the Railways is planning to connect the four metros of Delhi, Kolkata, Chennai and Mumbai.
The order book of this company has reached Rs 77,500 crore by the end of March. And these orders have to be completed within three years. RVNL company works on asset light model. The debt of the company has come down from Rs 12057 crore to Rs 3024 crore in 4 years.
Profit of RVNL
Talking about profits, the profit of RVNL has been increasing continuously for the last several years. In the year 2016, the company made a profit of Rs 434 crore. In the year 2017, it increased to Rs 439 crore. 570 in the year 2018 and Rs 705 crore in the year 2019.
What is the risk RVNL is a government company and works for Railways. The government has a stake of 87.8 percent in it. There is only the fear of disinvestment in this. Because the government is taking out its stake in public sector companies and selling them to the private sector. 96 percent of the income of this company comes from the railways, so changes in the plans of the railways can affect the business of this company.
Profitable Stock
RVNL stock is currently trading around Rs.43.05 Market experts believe that it is a profitable stock in such a small amount. This can be included in your portfolio.
Target Prediction / Forecast
|
Year |
Target Of RVNL |
|
2022(Target-1) |
Rs.51 |
|
(Target-2) |
Rs.73 |
|
2023(Target-1) |
Rs.92 |
|
(Target-2) |
Rs.112 |
|
2024(Target-1) |
Rs.142 |
|
(Target-2) |
Rs.164 |
|
2025(Target-1) |
Rs.192 |
|
(Target-2) |
Rs.216 |
|
2030(Target-1) |
Rs.573 |
|
(Target-2) |
Rs.623 |
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I am just sharing my views here for my friends, which wish to take my help.
Do trade or invest at your own risk, am not responsible for any losses and won't claim anything from your profits either. Be aware of what you are trading and take financial advices from your advisors before jumping in.