RVNL Share Price Target 2024: Rail Vikas Nigam Limited a state-owned railway company, has seen its share prices surge dramatically, hitting a 52-week high of Rs 399.70 on the BSE and Rs 399.90 on the NSE. This remarkable ascent in stock value is attributed to RVNL emerging as the lowest bidder (L1) for a significant project awarded by the Maharashtra Metro Rail Corporation Limited (Nagpur Metro). The project involves the construction of six elevated metro stations, further bolstering RVNL’s robust order book.
Key Drivers Behind RVNL’s Surge
Impressive Order Inflows
Prashanth Tapse, Sr VP Research Analyst at Mehta Equities, highlights that RVNL’s recent success in securing orders has reached an impressive Rs 65,000 crore. This substantial order book, nearly three times the company’s turnover of Rs 21,733 crore, underscores the company’s strong business visibility and potential for sustained growth. Approximately 50% of these orders are derived from the nomination process, while the remaining 50% come through competitive bidding.
Government’s Vision for Railway Infrastructure
The Indian government’s ambitious plans to enhance railway infrastructure significantly benefit RVNL. The company is strategically positioned to capitalize on various projects, including the Vande Bharat train and metro projects. Furthermore, RVNL is diversifying its portfolio by targeting high-margin, high-growth foreign projects in regions such as the UAE, Central Asia, and Western Asia.
RVNL Share Price Target Technical Analysis and Stock Performance
From a technical standpoint, Tapse advises caution at the current market price (CMP) of Rs 380, suggesting that long-term investors might consider entering at Rs 320 – Rs 300. In the short term, support is found near Rs 340, with immediate resistance between Rs 400 – Rs 410. A close above this resistance range could push the stock further towards Rs 430.
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RVNL Q4 Results 2024: A Strong Financial Performance
RVNL’s Q4FY24 results reflect a robust financial performance. The company reported a 33.2% year-on-year increase in profit after tax (PAT), reaching Rs 478.4 crore compared to Rs 359.25 crore in the same quarter of FY23. Revenue from operations surged by 17.4% to Rs 6,714 crore, up from Rs 5,720 crore in Q4FY23. Additionally, the company’s EBITDA saw a 21.9% year-on-year increase, rising to Rs 456.34 crore from Rs 374.36 crore in the corresponding quarter of the previous fiscal year.
Dividend Announcement
In its latest exchange filing, RVNL announced a recommended dividend of Rs 2.11 per share on each stock with a face value of Rs 10. This dividend payout, representing 21.10%, is subject to approval at the upcoming Annual General Meeting (AGM). If approved, the dividend will be paid within the statutory period of 30 days from the date of approval.
Investment Outlook: Buy, Sell, or Hold?
Buy for Long-Term Growth
Investors with a long-term perspective might find RVNL an attractive buy due to its solid fundamentals, extensive order book, and strategic positioning within the government’s infrastructure plans. The company’s focus on diversification and international projects also promises future growth potential.
Sell to Lock in Profits
Given the recent rally, short-term investors might consider selling to lock in profits. The stock has appreciated by approximately 56% in less than 11 trading sessions and 110% in 2024 so far. This rapid ascent may lead to profit-taking and potential short-term corrections.
Hold for Future Potential
For investors who already hold RVNL shares, maintaining their position could be beneficial. The company’s strong financials, continued order inflows, and potential for further growth make it a compelling hold. Monitoring technical levels such as Rs 340 for support and Rs 400 – Rs 410 for resistance is advisable.
Conclusion: Strategic Moves for RVNL Investors
Rail Vikas Nigam Limited’s impressive performance and strategic initiatives present a mix of opportunities and considerations for investors. Whether buying, selling, or holding, understanding the company’s financial health, market position, and future growth potential is crucial.
Disclaimer
We strictly advise readers of this website not to make investments based on these target prices. This article was written for information purposes, and the prices mentioned here are just a prediction. Investing in the stock market involves risk. The information provided is not investment advice. Consult a financial advisor before investing. All investments can lead to profit or loss. It’s uncertain.
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