The population of India is increasing rapidly, leading to a growing Indian economy. However, the credit for this growth should also be given to the Railway Department, which has connected the nation and played a vital role. One such company working on railway infrastructure projects is Rail Vikas Nigam Limited (RVNL). For those seeking information about RVNL’s business, current status, history, expansion, functioning, and share position in the stock market, including future RVNL share price targets for 2023, 2024, 2025, and 2030, we will provide a detailed overview.
RVNL was established by former Prime Minister of India, Shri Atal Bihari Vajpayee, on January 24, 2003. It was formed to develop Indian Railways, work on new projects, strengthen and expand the railway network, and ensure security. The company is involved in various railway infrastructure projects, including metro projects, major bridges, new line development, railway electrification, and cable construction. Its headquarters are located in New Delhi, and it was listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on April 12, 2019, with an initial price of ₹19.75 per share.
The Indian government recognizes the importance of investing in the security and expansion of the Railway Department for the country’s growth. Hence, RVNL is expected to undertake numerous projects in the near future. The company aims to increase the number of railway lines, with a focus on doubling the existing single-line tracks. Consequently, RVNL has several upcoming projects, making it an attractive investment opportunity.
In terms of financials, RVNL currently has a market cap of Rs 32,088.46 crore and a promoter holding of 78.2%. It has recorded a sales growth of 4.64% and a profit growth of 16.61%. However, the company has a debt of Rs 6,430.19 crore. Despite this, RVNL has a free cash flow of Rs 1,809.46 crore, indicating its ability to manage and reduce its debt. With strong fundamentals, RVNL presents a promising investment prospect.
Based on its financial performance and growth trajectory, RVNL’s share price targets for 2023 and 2024 are projected to be Rs 180 and Rs 240, respectively. Looking at the company’s net sales over the past five years, it has experienced consistent growth. In March 2022, RVNL recorded net sales of Rs 19,381.71 crore, reflecting its upward trend. This positive growth is also reflected in the company’s net profit, which reached Rs 1,087.21 crore in March 2022. As a result, the share price targets for 2024 are estimated to be Rs 270 for the first target and Rs 310 for the second target.
RVNL is currently involved in significant projects, such as the Rishikesh to Karnaprayag new railway line in Uttarakhand, which is expected to be completed by 2024. The completion of this project will benefit five districts in India. Additionally, RVNL is working on a 203km doubling project from Raipur to Titlagarh, connecting Odisha and Chandigarh. These projects, along with others in the pipeline, contribute to RVNL’s potential for growth. Hence, the share price target for 2025 is projected to be Rs 340 for the first target and Rs 360 for the second target.
Looking ahead to 2030, RVNL has three major ongoing metro projects: Joka binoy badal majerhat, new garia via rajerhat near dum dum airport, and a metro project near dakshineswar in Baranagar. The company is also constructing a workshop project with 15 coach maintenance facilities near Ranaghat and a Coach Periodic Overhauling and Refurbishment workshop at Jhansi. With a promoter holding of 78.2% and positive growth prospects, RVNL is expected to achieve significant targets in the coming years. The share price target for 2030 is estimated to be Rs 750 for the first target and Rs 800 for the second target.
In terms of dividends, RVNL has provided a dividend yield of 1.82% to its investors. In recent years, the company has increased its dividend payouts. In 2019, it provided a dividend of 0.09 paise, which increased to 1.14 paise in 2020 and 2.58 paise in 2021. In 2022, the company paid a dividend of 1.83 paise. The dividend history reflects RVNL’s commitment to rewarding its shareholders.
Overall, RVNL presents a strong investment opportunity due to its involvement in crucial railway infrastructure projects and its positive financial performance. With projected share price targets of Rs 180-240 for 2023, Rs 270-310 for 2024, Rs 340-360 for 2025, and Rs 750-800 for 2030, RVNL shows potential for significant growth.
