RVNL A 7-Star: From Rs 10 To Rs 320, This Navratna Stock Makes Investors Rich, Gives 3,045% Returns Post-Covid

Rail Vikas Nigam (RVNL) has emerged as a superstar with its robust performance in post-pandemic. From late March of 2020 to date, RVNL shares have given around 3,045% returns to its investors, turning even an investment as low as Rs 10,000 to a corpus of nearly Rs 3.14 lakh post-pandemic. The stock has journeyed from Rs 10 to over Rs 320 levels. The stock ended the trading week from January 15-19 with over 50% upside. RVNL has more potential ahead.

On Saturday, when the market is open for trading, RVNL shares hit a new 52-week high of Rs 320.75 apiece. The stock price jumped by nearly 10% on BSE in the early trade. It has a market cap of Rs 66,366.19 crore.

On the previous day, RVNL shares jumped by nearly 20% to end at Rs 291.60 apiece.

Just a day before the first nationwide lockdown, RVNL shares were trading near the Rs 10 level. From March 2020 to date, RVNL's lowest level is Rs 10.20 apiece which was struck on March 24, 2020, during the first wave of Covid bringing India and the world to a standstill. India went on nationwide lockdown from March 25, 2020.

Since then till now, RVNL's share price has skyrocketed by a humungous 3,044.61%. An investor who bought RVNL shares for Rs 10,000, is now recording a gain of up to Rs 3.04 lakh taking its overall investment value to more than Rs 3.14 lakh.

In the trading week that ended on January 19, RVNL shares climbed by 53% on BSE. While year-to-date, the stock is up by 74%. The chart of RVNL shows a stagnant line of momentum, with the stock price soaring by over 314% as of now in a year.

Recently, RVNL shares jumped due to huge deal wins and joint ventures to strengthen its footprint.

Last week, RVNL informed the company emerged as the lowest bidder (LI) for the "Supply, Installation, testing and commissioning of 11 KV Line associated works such as 11 KV Line Bifurcation, 11 KV line Interconnection, 11 KV Line conductor Augmentation, LT AB cabling augmentation and conversion of LT Bare conductor to AB cabling under Revamped Reforms-based and Results-linked, Distribution sector (Package-11) in Jabalpur (City), Jabalpur (O&M), Katni, Mandla, Dindori, Seoni, Chhindwara, Narsinghpur, Balaghat, Shahdol, Anuppur and Umariya Circles of MPPKVVCL, Jabalpur Company area.

The transaction is for a consideration of Rs 251.05 crore. The deal is domestically and is expected to be executed in 24 months.

Apart from this, RVNL has formed one joint venture with Jakson Green. The JV is named JGPL-RVNL EPC Private Limited. Under the JV, RVNL will hold a 49% stake, while a majority stake of 51% will be held by JGPL. The JV will explore opportunities in Solar Power Projects in India and Abroad. Accordingly, the JV will help RVNL to tap green clean energy projects.

Further, RVNL also incorporated a subsidiary company, RVNL Infra South Africa.

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.

RVNL is also among dividend-paying midcap stocks. In FY23, the company paid a dividend of up to 21.30% amounting to Rs 2.13 per share to its shareholders.

As per Angel One, RVNL has a healthy ROCE of 17.14%, while it gives more returns to its shareholders with an ROE of 18.7%. The company's P/E ratio (TTM) is at 41.13, and its P/B Ratio is at 7.69.

Further, as per Trendlyne data, the consensus recommendation from 2 analysts for Rail Vikas Nigam is HOLD. Also, its data revealed that the fundamentals for RVNL stock prices are positive. Here's what they are:

- Stock Price rose 277.27% and outperformed its sector by 211.07% in the past year.

- Debt to Equity Ratio of 0.87 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding increased by 0.01% in the last quarter to 0.14.

- Annual Net Profit rose 20.11% in the last year to Rs 1,420.55 Crores. Its sector's average net profit growth for the last fiscal year was 63.78%.

- Annual Revenue rose 5.43%, in the last year to Rs 21,278.04 Crores. Its sector's average revenue growth for the last fiscal year was 19.57%.

- Interest Coverage Ratio is 3.86, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Promoter Pledges are zero.

- Promoter Share Holding stayed the same in the most recent quarter at 72.84%.

- Return on Equity(ROE) for the last financial year was 19.39%, in the normal range of 10% to 20%.

- Price to Earning Ratio is 41.06, lower than its sector PE ratio of 41.39.

Last year, RVNL was granted Navratna Status. The grant of "Navratna" status to RVNL leads to enhanced delegation of powers, more operational freedom and financial autonomy which will give huge impetus to RVNL's progress, particularly so, when RVNL is extending its footprints in sectors beyond Railways and even in projects abroad.

Disclaimer: These information just highlights the stock price and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.