Our 10th company in the Series of Best Stocks Below Rs. 50 is Rail Vikas Nigam Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Rail Vikas Nigam Ltd is a special purpose finance Company created to undertake project development, mobilization of financial resources and implement projects pertaining to strengthening of Golden Quadrilateral and Port Connectivity.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹8,204cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 8.89
Sector PE Ratio: 29.28
PE Ratio of this company is low but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.60
Sector PB Ratio : 2.49
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 1.12%
Sector Dividend Yield : 0.51%
Dividend Yield of this company is high than Sector. Dividend of this company is Average than the peers of this company.
ROE: 18.2%
ROCE: 8.1%
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 15,713.08 | 922.41 |
| 2020 | 14,776.26 | 753.30 |
| 2019 | 10,434.97 | 687.74 |
| 2018 | 7,928.45 | 569.52 |
| 2017 | 6,217.09 | 443.47 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 7,275.35 | 7,692.96 | 4,360.39 | 5,302.69 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 7,275.35 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| -986.13 | -721.49 | -453.86 | 392.64 |
Debt Level: RVNL’s debt to equity ratio (101.9%) is considered high.
Reducing Debt: RVNL’s debt to equity ratio has increased from 86.1% to 101.9% over the past 5 years.
Debt Coverage: RVNL’s debt is not well covered by operating cash flow (11.6%).
Interest Coverage: RVNL’s interest payments on its debt are well covered by EBIT (34.7x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 78.20% | 0.26% | 0.37% | 8.72% | 12.44% |
| Mar 2021 | 78.20% | 0.25% | 0.55% | 8.72% | 12.29% |
| Dec 2020 | 78.20% | 0.42% | 0.66% | 8.77% | 11.94% |
| Sep 2020 | 87.84% | 0.31% | 1.10% | 0.00% | 10.75% |
Above table showing there is no big change in Promotors holding which is 78.20% in June 2021. FIIs invested in June 2021 with 2.30% and retail investor is 12.44%.
Now We’ll check the return of the company, This company started from Rs. 11.10 at 12 Oct 2016. This company given 113.86% returns in last 1 year from 2020 to 8 Nov 2021.
Investment Checklist for Rail Vikas Nigam Ltd.
- The company is currently profitable
- Debt is not well covered by operating cash flow
- Unstable dividend track record
- Volatile share price over the past 3 months
- Earnings are forecast to grow by an average of 3.5% per year for the next 3 years
- The company’s earnings are high quality
- Profit margins improved or RVNL became profitable
- At least 3 years of financial data is available
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹164B)
- Market cap is meaningful (₹76B)
- RVNL does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 30 to 35
Target: 48 ( 50% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
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Hope you liked Our 10th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss