Rail Vikas Nigam (RVNL): After 21.30% Payout; Railway Stock To Announce Dividend In 2 Weeks; Buy For Rs 340 TP

Navratna railway giant, Rail Vikas Nigam (RVNL) is going to be in focus in May 2024 due to its Q4 results for FY24 and final dividend recommendation on May 15. RVNL is a multi-bagger railway giant and has been recommended to buy for a massive target of Rs 340. Back-to-back order wins have strengthened RVNL's pipeline, making it an attractive bet on exchanges for the long term. RVNL shares currently trade below Rs 290.

RVNL's share price ended April month at Rs 286.25 apiece with a market cap of Rs 59,683.70 crore. The stock tumbled by nearly 1% on April 30th. But RVNL is a wealth-creating stock!

YTD, RVNL share price has surged by 57.15% on BSE, while in a year, the stock jumped by a whopping 142%. While in 5 years, the stock has skyrocketed by a breathtaking 1,133.84% on the exchange.

The next big sentiment driver is its quarterly earnings report and dividend recommendations.

As per the regulatory filing, RVNL said, a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, 15th May 2024 inter alia:

- To consider, approve, and take on record the Audited Financial Results (Standalone and Consolidated) of the Company for the Fourth Quarter (4th) and Year ended 31st March 2024, and

- To recommend Final Dividend, if any, for the FY 2023-24 subject to the approval of shareholders at Annual General Meeting (AGM)."

In the previous quarter, RVNL's net profit was at Rs 358.57 crore, down by 6.24% from the profit of R 382.42 crore in the same quarter a year ago. While the Q3FY24 PAT dipped by 3% from Rs 394.10 crore recorded in Q2FY24. Just like the bottom line, RVNL also could not get any gains in revenue from operations. In Q3FY24, RVNL's revenue dipped by 6.43% YoY and 4.6% QoQ to Rs 4,689.33 crore.

Also, RVNL paid dividends up to 21.30% amounting to Rs 2.13 per share for FY23.

RVNL was incorporated as a Public Sector Undertaking for the mandate to: ​Undertake and execute successfully the project development, financing, and implementation of projects related to rail infrastructure. Mobilize financial and human resources for project implementation.

The company has bagged massive orders in 2024. This week alone, RVNL bagged cumulatively nearly Rs 830 crore worth of orders.

On April 30, RVNL announced that the company emerged as the Lowest
Bidder (L1) from Eastern Railway for "Construction of Sitarampur bye pass line under Asansol Division of Eastern Railway. The project cost is about Rs 390.97 crore. On April 29, RVNL announced that KRDCL- RVNL JV has received a Letter of Acceptance (LoA) from Southern Railway for "Redevelopment of Thiruvananthapuram Central Railway Station on Engineering, Procurement and
Construction (EPC) mode which is worth Rs 438.95 crore.

BUY FOR Rs 340 Target:

In its latest thematic report, Prabhudas Lilladher said, "The stock has picked up well from the significant 50EMA level of 252 to gain strength and has moved past the previous peak zone of 271 levels to improve the bias and further rise is anticipated. The RSI has spiked after the consolidation period signaling a buy."

Accordingly, Prabhudas' note said, "With the chart looking attractive, we suggest buying the stock for an upside target of 340 level keeping the stop loss of 255 level."

The 50EMA means the 50-period Exponential Moving Average, which means the average closing price of a stock over the previous 50 days. Also, the RSI is a relative strength index that measures the price momentum of a stock and if the RSI is below 30 it means that the stock is oversold and the indicator if above 70, means that it is overbought or overvalued.