RVNL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | RVNL | Market Cap | 62,061 Cr. | Current Price | 298 ₹ | High / Low | 448 ₹ |
| Stock P/E | 64.5 | Book Value | 41.2 ₹ | Dividend Yield | 0.58 % | ROCE | 15.0 % |
| ROE | 14.4 % | Face Value | 10.0 ₹ | DMA 50 | 293 ₹ | DMA 200 | 323 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | 0.05 % | PAT Qtr | 264 Cr. | PAT Prev Qtr | 196 Cr. |
| RSI | 54.8 | MACD | 6.84 | Volume | 61,26,484 | Avg Vol 1Wk | 65,28,325 |
| Low price | 248 ₹ | High price | 448 ₹ | PEG Ratio | 21.4 | Debt to equity | 0.56 |
| 52w Index | 24.8 % | Qtr Profit Var | -10.4 % | EPS | 4.61 ₹ | Industry PE | 18.5 |
📊 RVNL shows moderate fundamentals with ROE (14.4%) and ROCE (15.0%) indicating decent efficiency. Debt-to-equity ratio is manageable at 0.56, and EPS remains modest at ₹4.61. Dividend yield is low at 0.58%. Valuations are stretched with a P/E of 64.5 vs industry average of 18.5, and PEG ratio of 21.4 highlights expensive growth. While quarterly PAT improved sequentially (₹264 Cr vs ₹196 Cr), overall profit variation (-10.4%) raises caution. The company benefits from infrastructure expansion projects but faces valuation risks.
💡 Ideal Entry Price Zone: ₹290 – ₹305 (near DMA 50 and below current levels for valuation comfort).
⏳ Exit Strategy / Holding Period: Existing holders should adopt a medium-term horizon (2–3 years). Partial profit booking can be considered near ₹430–₹440 (recent highs). Long-term holding advisable only if earnings growth sustains and valuations normalize.
✅ Positive
- ROE (14.4%) and ROCE (15.0%) show decent efficiency.
- Low debt-to-equity ratio (0.56) ensures financial stability.
- Quarterly PAT improved sequentially (₹264 Cr vs ₹196 Cr).
- MACD positive (6.84) indicates short-term bullish momentum.
⚠️ Limitation
- High P/E (64.5) compared to industry average (18.5).
- PEG ratio of 21.4 signals expensive growth.
- Dividend yield low at 0.58%.
- EPS modest at ₹4.61.
📉 Company Negative News
- Quarterly profit variation -10.4% shows earnings pressure.
- FII holdings reduced (-0.11%).
📈 Company Positive News
- Sequential PAT growth indicates operational improvement.
- DII holdings increased slightly (+0.05%).
🏭 Industry
- Industry P/E: 18.5, highlighting RVNL’s premium valuation.
- Sector supported by infrastructure and railway expansion projects.
🔎 Conclusion
RVNL is a moderately strong infrastructure stock with decent efficiency but stretched valuations. New investors should wait for entry around ₹290–₹305 for safety. Existing holders may adopt a 2–3 year horizon, with partial profit booking near ₹430–₹440. Long-term holding is advisable only if earnings growth sustains and valuation multiples improve.