Rail Vikas Nigam Limited (RVNL) a leading railway stock is among the top performers of 2024 in the sector with gains of more than 100% in the current year so far. Back-to-back deal wins have kept investors bullish on RVNL. After hitting a new all-time high of Rs 431.80 apiece, RVNL shares witnessed correction on June 25 as investors booked in profits. RVNL shares have a buying opportunity with a target price seen over the Rs 500 mark.
RVNL Share Price:
RVNL share price stood at Rs 408.15 apiece on NSE, down by 2.03% on June 25 with a market cap of Rs 85,100.10 crore. At the start of the week, RVNL touched a new 52-week high of Rs 431.80 apiece.
As of now, in 2024, RVNL stock has climbed by over 124% on NSE. The stock was merely at the Rs 182 level at the start of 2024. In a year, the gains in RVNL are even higher by 231%. All-time gains in RVNL are to the tune of 1,966.6%.
RVNL New Order:
RVNL touched a new high on June 24 after it announced on June 21, that it emerged as the Lowest Bidder (L1) from SER HQ-ELECTRICAL/SOUTH EASTERN RAILWAY for "Design, Supply, Erection, Testing & Commissioning of 132 KV Traction Substation, Sectioning post (SPs), and Sub sectioning post (SSPs) in 2x25KV System on Rajkhaswan- Nayagarh-Bolani section of Chakradharpur division of South Eastern Railway to meet 3000MT loading target on EPC mode." The transaction cost at Rs 191.53 crore.
Meanwhile, last week, on June 14, RVNL also emerged as the Lowest Bidder (L1) from East Coast Railway for "Provision of Automatic Block Signaling system with dual MSDAC and alteration in existing El/Pl/RRI stations in the section of Jakhapura-Nergundi, Khurda Road-Bhusundpur & Bhusundpur-Golanthra over Khurda Road Division ofEast Coast Railway." This transaction cost at Rs 160.08 crore.
RVNL Dividend:
Going ahead, RVNL has announced a final dividend of Rs 2.11 per share or 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). The Final Dividend 2023-24 would be paid within 30 days from the date of its declaration at the AGM. The Record Date/Date of Book Closure for payment of Final Dividend would be fixed and intimated in due course.
This dividend payout will be in addition to interim dividend of Rs 1.77 or 17.7% that RVNL paid last year. The ex-dividend date was June 4, 2023.
RVNL Share Target Price:
In its note, Mehta Equities liked RVNL among railway stocks. The brokerage stated that as of now, the domestic order book is around Rs 65,000 crore (approximately 3 times to its FY24 topline), which roughly constitutes 50% from the nomination, that is the typical railway projects, and 50% from the market. RVNL is also diversifying to other segments and eyeing many projects in foreign countries.
Further, the brokerage stated that they remain optimistic about the sector as well on the stocks, especially RVNL. Giving a buy recommendation, Mehta Equities has set a target price of Rs 470-500 on RVNL for the time frame of 12 months.
RVNL works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. The organization undertakes project execution from concept to commissioning and creates project-specific SPVs.
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