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Check Before You Invest : Rail Vikas Nigam Ltd

BSE: 542649 NSE: RVNL ISIN: INE415G01027
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Rail Vikas Nigam Ltd belong to?
Rail Vikas Nigam Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Rail Vikas Nigam Ltd a good quality company?
Rail Vikas Nigam Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Rail Vikas Nigam Ltd undervalued or overvalued?
Rail Vikas Nigam Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Rail Vikas Nigam Ltd a good buy now?
Rail Vikas Nigam Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd revenue growth is -8.9% for FY-2025 , which is below its 5 year CAGR of 6.5% , indicating slower growth.
Q.2 Gross Profit margin of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Gross profit margin which is the profit after deduction of direct costs, is 8% for FY-2025 , which is in line with its 5 year median of 8% , indicating stable margins.
Q.3 Operating Profit Margin of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.65% for FY-2025 , which is below its 5 year median of 6.1% indicating decreasing margins.
Q.4 Net Profit Margin of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Net Profit Margin is 6.43% for FY-2025 , is below with its 5 year median of 6.44%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 8 8
Operating Profit Margin 5.65 6.1
Net Profit Margin 6.43 6.44
Q.5 Return on Asset of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Return on Asset is 6.27%, which is below its 5 year historical median of 6.87%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Return on equity is 14.01% for FY-2025 , which is below its historical median of 18.56%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Return on capital employed is 14.74% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Cash conversion cycle is 18 days, above its historical median of 10 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.97 1.12
ROE 14.01 18.56
ROCE 14.74 16.27
Cash Conversion Cycle 18 days 10 days
Q.9 Debt to Equity ratio of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Debt-to-Equity ratio is 0.57 , which is lower with the industry average of 0.89 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Rail Vikas Nigam Ltd?
Rail Vikas Nigam Ltd Debt to cash flow from operations is 2.88 , which is at a moderate level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rail Vikas Nigam Ltd?
Promoters hold 72.84% of the Rail Vikas Nigam Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rail Vikas Nigam Ltd vs industry peers?
Rail Vikas Nigam Ltd revenue CAGR is 6.52% , compared to the industry median CAGR of 6.52% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 19,923 19,923
Gross Profit 1,593.8 1,593.8
Operating Profit 1,125 1,183
Net Profit 1,282 1,282
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.97 1.12
ROE 14.01 18.56
ROCE 14.74 16.27
Cash Conversion Cycle (days) 17.92 10

Valuation & price assessment

Q.1 Stock return of Rail Vikas Nigam Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 58.14% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 58.1% 54.6% -21.4%
Q.3 Valuation ratios of Rail Vikas Nigam Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 49.45 5.83 27.03
Price to Book 5.77 1.02 1.70
Price to Sales 2.82 0.36 1.45
EV to EBITDA 33.2 7.47 11.36

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