RVNL Share Price Target 2024: Shares of state-owned railway company, Rail Vikas Nigam Limited (RVNL), marched northward on the bourses to hit a 52-week high of Rs 399.70 on the BSE and Rs 399.90 on the NSE on Monday.
Read More: IRFC Share Price Target 2024: RECORD HIGH! Will the railway PSU stock touch Rs 200?
The rally in the stock prices came on the back of the news that the company has emerged as the lowest bidder (L1) from Maharashtra Metro Rail Corporation Limited (Nagpur Metro) for the construction of 6 elevated metro stations (Cantonment, Kamptee Police Station, Kamptee Municipal Council, Dragon Palace, Golf Club, and Kanhan River Metro Station).
Prashanth Tapse, Sr VP Research Analyst at Mehta Equities, said that RVNL has recently achieved a 52-week high, driven by continued order inflows which have reached approximately Rs 65,000 crore. Tapse believes that this is in stark contrast to the company’s turnover of Rs 21,733 crore, indicating a strong business visibility of nearly 3x. Of the total order book, roughly 50 per cent is derived from the nomination process, with the remaining 50 per cent coming through the market route.
“The current government has a significant vision for enhancing Indian railway infrastructure, and RVNL is well-positioned to capitalize on this growth. This is further supported by numerous Vande Bharat train and metro projects in the pipeline. Embarking on a new journey with a vision for diversification, RVNL is also focusing on securing foreign projects in high-margin, high-growth regions such as the UAE, Central Asia, and Western Asia,” said Tapse.
RVNL Share Price Target 2024
At this juncture, Tapse advises against adding new positions at the current market price (CMP) of Rs 380. This recommendation is based on the recent rally in the stock from Rs 255 to a day high of Rs 399, which translates to a return of approximately 56 per cent in less than 11 trading sessions and an overall rally of around 110 percent in 2024 so far.
From a technical perspective, Rs 320 – Rs 300 would be an appropriate level for long-term investors to consider entering the stock afresh, said Tapse. “In the short term, support is near Rs 340 levels, while immediate resistance is in the Rs 400 – Rs 410 range. Any close above this range could see the stock move further upwards towards the Rs 430 level,” Tapse added.
Read More: Petrol, Diesel Price Today: Check Latest Fuel Prices In Your City On May 28
RVNL Q4 Results 2024
RVNL’s profit after tax (PAT) climbed 33.2 per cent year-on-year to Rs 478.4 crore in the quarter under review, as against Rs 359.25 crore reported in the corresponding quarter of FY23.
The company’s revenue from operations jumped 17.4 per cent year-on-year to Rs 6,714 crore in Q4FY24 from Rs 5,720 crore reported in Q4FY23.
The civil construction company’s EBITDA witnessed a surge of 21.9 per cent year-on-year to Rs 456.34 crore in the quarter under review, as against Rs 374.36 crore reported in the corresponding quarter of FY23.
RVNL Dividend 2024
The state-owned company in the exchange filing has said that its board has recommended paying a dividend of Rs 2.11 on each stock having a face value of Rs 10 to its shareholders. The said dividend payout, however, remains to be approved at the ensuing Annual General Meeting of the company.
“Recommended Final Dividend of Rs 2.11/- per share (i.e. 21.10%) on the paid-up equity share capital for the financial year 2023-24 subject to approval of the shareholders at the ensuing Annual General Meeting (AGM),” said the company in a regulatory filing.
According to the BSE data, the final dividend, if declared, will be paid within the statutory period of 30 days from the date of approval in the ensuing AGM.
RVNL Price History
The state-owned company is a constituent of the S&P BSE 500 index. BSE analytics reflect that the company’s stock has advanced 29.64 per cent in the last one month and 40.78 per cent in the last six months.
Read More: Bharat Dynamics shares tank 7% on profit booking, snaps ten-day gaining streak
Shares of RVNL have emerged as a multibagger in the last six months with a rally of 125.07 per cent during the said period.
The railway company’s shares have a 52-week range of Rs 399.70 – 110.50 on the BSE.
