RVNL Vs. Titagarh: Comparing Financials, Returns And Orderbook

RVNL and Titagarh Rail Systems have generated a lot of buzz over the past year. Thanks to the rally in railway stocks, most of these stocks have given multi-bagger returns to investors. In this article, we compare the two companies on various parameters.

Returns

In the past year, railway stocks have seen a strong bullish rally backed by the government’s increased focus on the sector leading to a robust domestic order inflow. In the past year, RVNL’s share price has gone up over 350%, while Titagarh’s shares have given over 80% returns.

As the above chart depicts, a ₹1,000 investment in RVNL would have been worth over ₹4,500 today, while a similar in Titagargh would have grown to around ₹1,824.

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Financials

Titargatrh Rail Systems has registered explosive growth in its revenue over the past three years. The company’s standalone revenue has registered a compound annual growth rate (CAGR) of over 55% taking its revenue from ₹1,475 crore in FY22 to ₹3,853 crore in FY24.

RVNL, on the other hand, has seen moderate growth in comparison. The public sector firm has seen its revenue grow from ₹19,381 crore in FY22 to ₹21,732 crore in FY24 with a 3-year CAGR of around 12%.

Titagarh’s profit has also experienced a similar explosive growth in profit. The company’s annual net profit has grown from ₹79.4 crore in FY22 to ₹296 crore in FY24. RVNL’s net profit has seen a 15.9% CAGR over FY22-FY24.

Year Ended	Metric	RVNL	Titagarh
Mar ’24	Revenue	21,732.6	3,853.3
	Profit	1,463	296.9
Mar ’23	Revenue	20,281.6	2,780.5
	Profit	1,268	103.4
Mar ’22	Revenue	19,381.7	1,474.8
	Profit	1,087.2	79.4

Orderbook

RVNL’s order book currently stands at around ₹83,221 crore. This is a slight decrease from the ₹85,000 crore order book posted at the end of the March quarter. Titagarh’s combined orderbook stands at ₹27,443 at the end of June 2024. This is a slight decrease from the ₹28,076 crore reported at the end of the March quarter.

RVNL’s current market capitalisation is at around ₹1.20 lakh crore, while Titagarh’s market cap is around ₹20,080 crore.

Analyst Calls

Brokerages are cautious about RVNL. Antique Broking has a “sell” call on the stock with a target price of ₹283, while IDBI Capital maintained its “hold” rating for the stock with a target price ₹549.

Morgan Stanley maintained an "overweight" rating on Titagarh Rail, with a target price of ₹1,337 after the June quarter results. 

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