Skip to content

Brokers Call: Rail Vikas Nigam (Buy)

Brokers Call: Rail Vikas Nigam (Buy)

Target: ₹42

CMP: ₹30.05

Rail Vikas Nigam (RVNL) has hosted calls with investors and analysts for business updates. Weak order flow has been a major concern for RVNL. For this, the company highlighted, it has bid for an order of Rs 21,000 crore. And out of open tenders worth ₹6,000 crore, it has won orders worth ₹2,000 crore so far. RVNL has guided for order inflow of ₹15,000 crore in FY23.

Revenue execution in FY 2012 was strong, with a growth of 26 per cent and RVNL expects to maintain this in terms of its revenue growth in the mid-term (4-5 years).

We have retained our EPS estimate for FY 2013/24, but lowered the valuation multiplier to 6 times FY24E EPS (earlier 7x). The stock trades at 4x FY24 EPS and offers a dividend yield of 7-8 per cent. Its order book of ₹57,000 crore provides revenue visibility for the next 3-3.5 years and the catalyst for the stock is new order wins in competitive bidding.

Revenue grew 15 per cent annually to ₹6,400 crore and EBITDA margin was maintained at 6.3 per cent. EBITDA has grown by 15 per cent annually to ₹410 crore. PAT stood at ₹378 crore y-o-y, down one per cent y-o-y, +29 per cent qoq. The Board recommended a dividend of ₹0.25/share and thus the FY22 DPS was ₹1.83/share (dividend return of about 6 per cent).

Published on

22 June 2022

credit source

Brokers Call: Rail Vikas Nigam (Buy)

#Brokers #Call #Rail #Vikas #Nigam #Buy

if you want to read this article from the original credit source of the article then you can read from here

Shopping Store 70% Discount Offer

Leave a Reply

Your email address will not be published.