RVNL’s share price continued its golden run on Tuesday going up over 15% to hit a new all-time high of ₹345.90. The massive surge comes as the company’s strong earnings impressed investors.

The RVNL Analyst: The Vishal Periwal-led analyst team at IDBI Capital maintained their hold rating on RVNL but raised that price target to ₹303 from the earlier ₹248.

The RVNL Thesis: The analysts noted that the company’s profit after tax for the March quarter beat its estimates by 20%. The brokerage said that the beat was mainly due to strong executions & improved margins. The analysts highlighted that the company achieved its all-time highest EBITDA margin of 6.8%.

See Also: HOAC IPO Day 3: GMP Jumps, Subscriptions At 872x

The brokerage highlighted that the company’s performance in the past two quarters was weak but the strong performance in the March quarter helped its annual revenue increase by 8% and PAT increase by 11% YoY.

The analysts also pointed out that RVNL’s order book stands at ₹85,000 crore, 4 times the TTM (Trailing Twelve Months) revenue, and the order book from competitive bid projects is inching up to over 40%. The analysts said that the company bid for projects worth ₹65,000 with a success rate of over 20% during the year ended March 2024.

The brokerage said that the rail infra major plans to bid for high-speed rail projects under the Viksit Bharat 2047 scheme. It currently has no exposure in this segment.

Price Action: RVNL's share price was up 13.30% to trade at ₹339.55 in the late hours of trading on Tuesday.

Read Next: Why Brokerages Are Cautiously Optimistic About Vodafone Idea