RVNL‘s share price was in the red on Wednesday morning going down over 1% to hit an intraday low of ₹562.

The RVNL Analyst: Analysts at IDBI Capital maintained the “hold” rating for the stock with a price target of ₹549. The target indicates an around 3%-4% downside from the current levels.

The RVNL Thesis: The. brokerage said that RVNL’s June quarter net profit fell 30% short of its expectations, primarily due to weak execution linked to central elections and geopolitical turmoil. The analysts also pointed out that the company has guided flat revenue at ₹22,000 crore for FY25 and expects EBITDA margins to be in the range of 6%-6.5%.

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The current order book stands at ₹83,000 crore, which is four times the stock’s trailing 12 months (TTM) revenue, with a growing portion of orders — over 40% — coming from competitive bids. Although margins have declined in two major projects, management is optimistic about improving execution in the second half of FY25, the analysts highlighted.

The analysts also said that RVNL had plans to participate in Bangladesh projects worth ₹2,500 crore, but due to the current political turmoil in Bangladesh, the bids were stopped. The company plans to participate in the bidding process once the situation improves.

On Tuesday, analysts at Antique Broking resumed coverage on the stock with a “sell” rating and a target price of ₹283.

Price Action: RVNL’s share price was down 0.21% to trade at ₹568.25 as the markets opened on Wednesday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.