Rail Vikas Nigam Ltd (RVNL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

NBCC

Larsen & Toubro

Altius Telecom

Vertis Infra.

National High

IRB Infra. Trust

Kalpataru Proj.

KEC Internationa

Afcons Infrastr.

Rail Vikas

IRB Infra.Devl.

Why is Rail Vikas Nigam Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 5.16% of over the last 5 years

Negative results in Sep 25

PAT(Q) At Rs 230.29 cr has Fallen at -22.7% (vs previous 4Q average)
ROCE(HY) Lowest at 13.38%
DEBTORS TURNOVER RATIO(HY) Lowest at 13.10 times

With ROCE of 7.2, it has a Expensive valuation with a 5.4 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -29.74%, its profits have fallen by -15.8%

Despite the size of the company, domestic mutual funds hold only 0.57% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.74% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rail Vikas for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rail Vikas

-29.87%

-0.70

42.55%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.40%

EBIT Growth (5y)

5.16%

EBIT to Interest (avg)

2.12

Debt to EBITDA (avg)

5.22

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.44

Tax Ratio

23.01%

Dividend Payout Ratio

27.95%

Pledged Shares

Institutional Holding

11.07%

ROCE (avg)

11.33%

ROE (avg)

16.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.82

EV to EBIT

75.20

EV to EBITDA

72.47

EV to Capital Employed

5.40

EV to Sales

3.41

PEG Ratio

Dividend Yield

0.54%

ROCE (Latest)

7.17%

ROE (Latest)

11.88%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.52 times

-11What is not working for the Company

PAT(Q)

At Rs 230.29 cr has Fallen at -22.7% (vs previous 4Q average

ROCE(HY)

Lowest at 13.38%

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.10 times

PBT LESS OI(Q)

At Rs 132.01 cr has Fallen at -5.2% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 61.44 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Rail Vikas

Debt-Equity Ratio - Half Yearly

Lowest at 0.52 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Rail Vikas

Profit After Tax (PAT) - Quarterly

At Rs 230.29 cr has Fallen at -22.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 298.00 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 132.01 cr has Fallen at -5.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 139.20 Cr

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 61.44 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 13.10 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio