RVNL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 2.9

🔍 Core Financials & Returns Overview

ROE & ROCE

ROE at 14.0%, ROCE at 14.7% — stable but not exceptional in infra-heavy PSU space.

Earnings Performance

EPS ₹6.15; QoQ PAT dropped –4.03% (₹459 Cr. vs ₹311 Cr.) — mixed trend considering past momentum.

Debt Status

Debt-to-equity 0.57 — moderate leverage, not alarming but worth tracking.

Dividend Yield

0.59% — low for PSU category; might improve with future cash generation.

💸 Valuation Metrics & Technicals

Metric Value Insight

P/E Ratio 58.5 Very high vs industry average (23.8) — rich valuation

P/B Ratio ~7.84 Trading at steep premium over book — momentum-priced

PEG Ratio 11.9 Unfavorable — growth not keeping up with price

RSI 31.4 Oversold territory — technical bounce possible

MACD –8.62 Bearish divergence — signals caution

DMA Analysis Price ₹360 vs 50DMA ₹385 & 200DMA ₹392 Trading below trend averages — bearish undertone

Volume: Active with ~45 lakh shares — notable interest despite technical weakness.

52W Index: At 19.4% — way off highs, signals potential bottoming zone.

Institutional Flow

FII outflow (-0.18%), DII inflow (+0.17%) — neutral bias overall

🚉 Business Model & Strategic Advantage

Core Business: Executes rail infrastructure projects across track laying, electrification, and signaling.

Growth Drivers

Backed by Ministry of Railways — strong visibility of project pipeline.

Focused on high-value contracts; EPC structure offers execution scale.

Moat Analysis

Government-linked PSU with monopolistic access in rail development.

Execution efficiency & scale critical — delay or budgetary bottlenecks are key risks.

Challenges

Rich valuation may cap near-term upside.

PEG and declining profit raise concern over sustainability.

📌 Entry Zone & Investment Thesis

Suggested Entry Zone: ₹340–₹355 — near support with RSI oversold setup.

Holding View

Ideal for medium-term infrastructure exposure, with possible re-rating if new contracts or policy tailwinds emerge.

Not a classic compounding story due to valuation concerns and cyclical performance.

Monitor quarterly earnings, project wins, and FII/DII behavior to gauge next leg.

Fancy a side-by-side with IRCON, NBCC, or KEC? I can craft a crisp PSU infra showdown with ROE, order book, and dividend metrics to highlight the stronger horse in the rail race. Just whistle. 🚦

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