Rail Vikas Nigam Limited (RVNL) is a government-owned company in India that specializes in the development and implementation of railway infrastructure projects. Established in 2003, RVNL plays a crucial role in expanding and modernizing the Indian railway network, RVNL was incorporated as a Special Purpose Vehicle (SPV) by the Ministry of Railways in India. It was created to fast-track railway infrastructure development projects. In this article we will discuss Rail Vikas Nigam Share Price Target for 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030.
Table of Contents
Business Model of Rail Vikas Nigam Limited
The business model of Rail Vikas Nigam Limited (RVNL) revolves around its role as an implementing agency for railway infrastructure development projects in India. RVNL’s business model:
- Project Identification and Planning: RVNL identifies railway infrastructure projects that are essential for improving connectivity, enhancing efficiency, and modernizing the Indian railway network. These projects may include new line construction, track doubling, electrification, station development, and more.
- Funding and Financing: Rail Vikas Nigam Limited (RVNL) secures funding for its projects through a combination of sources. This includes equity investment from the Indian government, loans from financial institutions, and revenue generated from project execution. RVNL may also engage in public-private partnerships (PPP) to mobilize additional resources.
- Project Execution: Rail Vikas Nigam Limited is responsible for the end-to-end execution of railway projects. This involves detailed project planning, design, feasibility studies, and tendering. RVNL then oversees the construction phase, ensuring that projects are completed on time, within budget, and in compliance with quality and safety standards.
- Advanced Technologies: RVNL often incorporates advanced technologies and modern construction techniques to expedite project execution and improve the quality of railway infrastructure. This includes the use of GPS-based surveying, state-of-the-art signaling systems, and other innovations.
- Electrification Initiatives: A significant part of RVNL’s business model involves the electrification of railway lines. This move towards electrification not only reduces environmental impact but also increases the efficiency of rail transportation.
- Safety Measures: Rail Vikas Nigam Limited (RVNL) places a strong emphasis on safety in all aspects of project execution. It adheres to safety protocols to prevent accidents and ensure the well-being of railway users and workers.
- Transparency and Compliance: RVNL operates transparently, adhering to government guidelines, policies, and regulatory frameworks. It ensures compliance with all relevant laws and regulations governing railway development.
- Revenue Generation: Rail Vikas Nigam Limited generates revenue by successfully executing projects. This revenue is reinvested into new projects, ensuring the self-sustainability of the organization.
- Public-Private Partnerships (PPP): In cases where it is beneficial, RVNL engages in PPP agreements with private sector companies and state governments. This allows for the sharing of resources and expertise in project development.
- Maintenance and Upkeep: After project completion, RVNL is often responsible for the maintenance and upkeep of the infrastructure it has developed. This includes track maintenance, station facilities, and electrification systems.
- Impact on National Infrastructure: Rail Vikas Nigam Limited (RVNL)’s projects have a direct impact on the growth and modernization of India’s national railway infrastructure, improving connectivity, reducing congestion, and promoting economic development.
Sales per Business Specification
| Specifications (in INR Million) | 2022 | Weightage | 2023 | Weightage | Growth |
|---|---|---|---|---|---|
| Ministry of Railways Projects – Non Metro | 165,980 | 85.6 % | 168,161 | 82.9 % | +1.31% |
| Ministry of Railways Projects – Metro | 14,457 | 7.5 % | 18,715 | 9.2 % | +29.45% |
| Deposit Work – Special Purpose Vehicles | 9,758 | 5.0 % | 9,532 | 4.7 % | -2.31% |
| Deposit Work – Others | 2,464 | 1.3 % | 4,054 | 2.0 % | +64.52% |
| Zonal Railway Projects Executed by Rail Vikas Nigam Limited | – | – | 2,322 | 1.1 % | – |
| Consultancy Services | – | – | 32 | 0.0 % | – |
Shareholding of Rail Vikas Nigam Limited
As of June 2023, Shareholding of RVNL are as –
- Promotors- 78.20%.
- Retail & Others- 14.30%.
- Other Domestic Institutions- 5.66%.
- Foreign Institutions- 1.75%.
- Mutual Funds- 0.09%.
Rail Vikas Nigam Share
Rail Vikas Nigam is listed on the National Stock Exchange and the Bombay Stock Exchange and has a large number of shareholders. Promotors holds the majority stake in the company.
As of 11 September, 2023, Rail Vikas Nigam (RVNL) share price on the NSE was INR 190.50/-, Rail Vikas Nigam (RVNL) Share 52 week high at Rs. 191/- & 52 week low Rs. 32.85/-, Dividends Yields of RVNL is 1.12% & P/E is 27.09.
| Company Name | Rail Vikas Nigam Limited |
| Share Name | NSE: RVNL, BSE: 542649 |
| Sector | Railway Infrastructure Projects |
| Headquater | New Delhi |
| Foundation | 2003 |
| Key Person | Pradeep Gour (Chairman & MD) |
| Market Cap | 39,511.13 Crores Rs. |
| Revenue | 20,281.21 Crore Rs |
| Official Website | Click Here |
Rail Vikas Nigam Share Price Target 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2040, 2050
| Year | First Target | Second Target |
| 2023 | 199 | 225 |
| 2024 | 230 | 310 |
| 2025 | 316 | 437 |
| 2026 | 446 | 574 |
| 2027 | 580 | 691 |
| 2028 | 698 | 822 |
| 2029 | 828 | 946 |
| 2030 | 953 | 1087 |
| 2040 | 3650 | 3760 |
| 2050 | 11750 | 12120 |
Note:- “That these share price targets for “Rail Vikas Nigam (RVNL) Share” are only provided for the purpose of reference and that this prediction will only hold true in the event that there is optimism in the market. Any uncertainties regarding the company or the current state of the global market will not be addressed in this analysis.”
Annual Result Summary of Rail Vikas Nigam Limited
Annual result summary of Rail Vikas Nigam Limited (RVNL) :
- Net profit of Rs. 1,267.96 crore, up 16.6% from Rs. 1,087.21 crore in the previous year.
- Total revenue of Rs. 21,285.51 crore, up 5.8% from Rs. 20,190.97 crore in the previous year.
- Operating profit of Rs. 1,644.38 crore, up 16.9% from Rs. 1,406.10 crore in the previous year.
- Earnings per share (EPS) of Rs. 6.08, up 16.69% from Rs. 5.21 in the previous year.
- Order book of Rs. 41,546.54 crore, as of March 31, 2023.
- The company completed 352 km of new track during the year, taking the total to 8,863 km.
- It also commissioned 16 new stations and 137 km of electrified track.
- RVNL is currently executing 140 projects, including 116 railway lines, 13 bridges, and 11 stations.
Last 5 Year History of Rail Vikas Nigam (RVNL) Share
In Last 5 year Rail Vikas Nigam Share give 671.25% returns to its Investors.
| Year | Share Price |
| Sep 2019 | 24.70 |
| Sep 2020 | 21.35 |
| Sep 2021 | 30.10 |
| Sep 2022 | 33.80 |
| Sep 2023 | 190.50 |
Rail Vikas Nigam Share Price Target 2023
The share price of Rail Vikas Nigam Limited (RVNL) has grown significantly in the past year. As of September 11, 2023, the share price is Rs. 189.50, up from Rs. 153.90 on September 11, 2022. This represents a growth of 23.2%.
Rail Vikas Nigam Limited (RVNL) share price target 2023 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2023 | ₹199 | ₹225 |
Rail Vikas Nigam Share Price Target 2024
CAGR of Rail Vikas Nigam Limited (RVNL) has grown by 24.10% from year 2022 to 2023. At this growth RVNL share continue to grow 15% to 20% in year 2024.
Rail Vikas Nigam Limited (RVNL) share price target 2024 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2024 | ₹230 | ₹310 |
Rail Vikas Nigam Share Price Target 2025
Over the past year, RVNL has secured numerous new projects, resulting in a significant expansion of its order book and instilling greater confidence among investors.
Rail Vikas Nigam Limited (RVNL) share price target 2025 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2025 | ₹316 | ₹437 |
Rail Vikas Nigam Share Price Target 2026
The Indian government is investing heavily in the railways sector. This is expected to create more opportunities for RVNL and other railway construction companies.
Rail Vikas Nigam Limited (RVNL) share price target 2026 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2026 | ₹446 | ₹574 |
Rail Vikas Nigam Share Price Target 2027
RVNL will likely play a significant role in the ongoing electrification of railway lines in India. This transition to electric traction not only reduces environmental impact but also enhances operational efficiency.
Rail Vikas Nigam Limited (RVNL) share price target 2027 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2027 | ₹580 | ₹691 |
Rail Vikas Nigam Share Price Target 2028
The company has a good track record of execution. It has completed 352 km of new track in the last financial year, taking the total to 8,863 km. It has also commissioned 16 new stations and 137 km of electrified track.
Rail Vikas Nigam Limited (RVNL) share price target 2028 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2028 | ₹698 | ₹822 |
Rail Vikas Nigam Share Price Target 2029
RVNL will have a role in maintaining and upgrading the infrastructure it has developed. This includes track maintenance, station facilities, and ensuring the longevity and safety of railway assets.
Rail Vikas Nigam Limited (RVNL) share price target 2029 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2029 | ₹828 | ₹946 |
Rail Vikas Nigam Share Price Target 2030
The company’s financial performance has been strong. The company has been consistently profitable and has been paying dividends to its shareholders. Overall, the outlook for RVNL is positive. The company is well-positioned to continue its growth in the coming years.
Rail Vikas Nigam Limited (RVNL) share price target 2030 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2030 | ₹953 | ₹1087 |
Recent News of Rail Vikas Nigam Limited
- RVNL emerges as lowest bidder for Rs. 640 crore railway project in Madhya Pradesh. RVNL has emerged as the lowest bidder for the construction of a new railway line between Piparwar and Anuppur in Madhya Pradesh. The project is worth Rs. 640 crore and is expected to be completed in 30 months.
- RVNL commissions new railway line in Bihar. RVNL has commissioned a new railway line between Begusarai and Barauni in Bihar. The 35 km long line is part of the East-West Corridor and is expected to improve connectivity in the region.
- RVNL awarded contract for doubling of railway line in Uttar Pradesh. RVNL has been awarded a contract for the doubling of a railway line between Moradabad and Rampur in Uttar Pradesh. The project is worth Rs. 500 crore and is expected to be completed in 24 months.
- RVNL receives financial assistance from World Bank for railway projects. The World Bank has approved a loan of $500 million for railway projects in India. The loan will be used to finance the construction of new railway lines, the electrification of existing lines, and the improvement of railway safety.
- RVNL shares rise after company reports strong financial results. RVNL shares rose by 5% after the company reported strong financial results for the quarter ended June 2023. The company’s net profit grew by 12% to Rs. 500 crore, while its revenue grew by 15% to Rs. 2,000 crore.
Why RVNL Share increasing in recent days?
Here its Following Reasons for Rail Vikas Nigam Limited (RVNL) share price increasing rapidly-
- Impressive Financial Performance: The company has delivered robust financial results for the quarter ending in June 2023. Notably, its net profit surged by 12%, accompanied by a substantial 15% revenue growth. These stellar numbers have significantly bolstered investor confidence in the company.
- Government Commitment to Railways: The Indian government has demonstrated a strong commitment to the railway sector by allocating a substantial budget of Rs. 2.4 lakh crore for the fiscal year 2023-24. This substantial investment is poised to create a plethora of opportunities, not only for RVNL but also for other firms involved in railway construction.
- New Project Triumphs: RVNL has clinched several noteworthy projects in recent months. These include the construction of a brand-new railway line connecting Piparwar and Anuppur in Madhya Pradesh, as well as the doubling of an existing railway line linking Moradabad and Rampur in Uttar Pradesh. These successful project acquisitions have notably swelled the company’s order book, further augmenting investor confidence.
- Bright Prospects for the Railway Sector: The railway sector is on the brink of a promising era, driven by various factors. Rapid urbanization, a burgeoning demand for both passenger and freight transportation, and substantial government investments all contribute to the sector’s positive outlook. These favorable conditions bode well not only for the railway industry as a whole but also for RVNL, positioning the company for a bright future.
FAQs
RVNL has reported strong financial results for the past few years, with net profit and revenue growing steadily. In Last One Year RVNL Share give 460.29% returns to its Inverstors, This is a good indicator of the company’s financial health, Ultimately, the decision of whether or not to invest in RVNL is up to you.
As per our analyst & Rail Vikas Nigam bagged Government Railway Orders, Share price of RVNL for 2023 will be 225-230.
Rail Vikas Nigam has a shareholder equity of ₹73.3 billion and a total debt of ₹64.4 billion, resulting in a debt-to-equity ratio of 87.9%. The company’s total assets amount to ₹184.2 billion, while its total liabilities stand at ₹111.0 billion. Rail Vikas Nigam’s Earnings Before Interest and Taxes (EBIT) is ₹12.9 billion, leading to an interest coverage ratio of 2.3.
Our analysis suggest minimum target of ₹316 and a maximum target of ₹437 for RVNL’s share price in 2025.
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