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%.
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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.
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