RVNL Share Price Target 2022, 2023, 2024, 2025 and 2030

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RVNL share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about RVNL share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.

For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned RVNL share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.

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RVNL Share Price Target 2022, 2023, 2024, 2025 and 2030

RVNL functions as an extended arm of the Ministry of Railways working for & on behalf of MoR. It is empowered to act as an Umbrella SPV to undertake project development, resource mobilization, etc. directly or by creating project-specific SPVs or by any other financing structure found suitable. RVNL’s mandate includes mobilization of extra-budgetary resources through a mix of equity, and debt from banks, financial institutions, multilateral agencies like the Asian Development Bank, and bilateral agencies for project execution through PPP by the formation of project-specific SPVs for Port and Hinterland connectivity. RVNL can enter into and carry on business relating to the creation and augmentation of the capacity of rail infrastructure on the fast track.

Rail Vikas Nigam is in the business of executing all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges, institution buildings, etc. It generally works on a turnkey basis and undertakes the full cycle of project development from conceptualization to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management, etc., and all stages of project execution up to the stage of commissioning of the new railway lines.

Share Holding Pattern

RVNL Share Price Target 2022, 2023, 2024, 2025 and 2030

Net Sales

RVNL Share Price Target 2022, 2023, 2024, 2025 and 2030

Net Profit

RVNL Share Price Target 2022, 2023, 2024, 2025 and 2030

RVNL Share Price Target 2022

RVNL has achieved its all-time highest turnover during the year 2020-21. The Company recorded a total income of Rs. 15730.40 crore compared to Rs. 14796.16 crore in the previous year. Profit after tax for the year 2020-21 is Rs.940.55 crore as against Rs. 789.85 crore in the previous year.

During the financial year, the Company has earned a turnover of Rs.15403.65 crore as against Rs. 14530.58 crore of the previous year with a percentage showing an increase of 6.01%. During the year, the Company has spent Rs. 21.86 crore as against Rs. 19.05 crore in the previous year towards Corporate Social Responsibilities.

In 2020-21, RVNL increased its expenditure on project execution from Rs 14,530.58 crore to Rs 15,403.65 crore, which excludes the element of Rs 1,840.52 crore as GST. This reflects an increase of 6.01%. Profit Before Tax increased from Rs 990.84 crore in 2019-20 to Rs 1155.67 crore in 2020-21, and Profit After Tax (PAT) of the Company is at Rs 940.55 crore, showing an increase of 19.08% over the previous year.

During the year, despite the continuation of pandemic Covid-19 globally and in India, Company commissioned 662.02 km of project length as against 665.49 km in 2019-20. 56.49 km of New Line, 601.39 km of Doubling & 4.14 km of MTP Plan Head work were commissioned. As compared to 1959.83 km of project length completed in 2019-20, RVNL completed 2306.39 km in 2020-21 implying an increase of 17.68 %. This consists of 780.68 km of Doubling, 181.57 km of Gauge Conversation, 4.14 km of Metropolitan Transport Project (MTP), and 1340 km of Railway Electrification.

In addition, Railway Electrification of 557.66 km was also carried out in other than specific Railway Electrification projects as part of Doubling. During the year, two important projects Bhopal-Bina- 3rd line (143 km) and Barkhera – Habibganj – 3rd line (41.420 km) were completed. By considering all the factors, RVNL share price target for 2022 is Rs 84.

RVNL share price target 2022
Rs 84

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RVNL Share Price Target 2023

In 2020-21, 182 stations were interlocked by RVNL. This included commissioning of 66 new Electronic Interlocking, 4 new Panel Interlocking, and alterations in existing 51 EIs, 54 existing PI stations, and 7 Mechanical Signalling Stations of 4th line, 3rd line, and Doubling projects/ 118 stations on Railway Electrification projects, interlocking of 18 Mid-section Level Crossing Gates and 23 IBS/Auto signals. The Company has also been able to successfully commission telecom works involving the laying of optic fiber cables and 6 Quad cables totaling 1300 km.

Commendable progress was also made on the new hill rail projects assigned to RVNL, that is, the RishikeshKarnaprayag section in Uttarakhand and Bhanupali-Bilaspur-Beri section in Himachal Pradesh. Tunneling works in challenging Himalayan geology are being carried out with state of art machinery and the best technical expertise.

The projects related to the extension of the Kolkata Metro got delayed due to various issues such as nonacquisition of land, clearances, and removal of hindrances by the local authorities. RVNL share price target for 2023 is Rs 97.

RVNL share price target 2023
RS 97

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RVNL Share Price Target 2024

The Company is taking measures for ensuring cost control and timely delivery of projects, without any compromise on quality for the execution and delivery of rail infrastructure projects on a fast track basis. RVNL can play a significant role in the Ministry of Railways’ efforts of raising extra-budgetary resources for project implementation, especially through the SPV route. Innovative models for project financing will also have to be explored. RVNL has also requested the Ministry of Railways’ that it may be permitted to leverage its equity base to raise funds from the market as per its mandate.

RVNL has created a permanent cadre through absorption to provide institutional continuity and to reduce the dependence on seeking officers and staff on deputation from Railways. Most of the workforce consists of qualified technical staff with experience in Railways and/or its PSUs. Wherever required, RVNL has also recruited specialists to provide expert guidance in its project implementation.

A comprehensive and appropriate training program is being implemented to develop competent, suitably skilled, and qualified manpower. Efforts are also being made to transfer skills and best practices from other infrastructure sectors and acquire skills related to the execution of railway projects. RVNL share price target for 2024 is Rs 115.

RVNL share price target 2024
Rs 115

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RVNL Share Price Target 2025

India has the fourth largest railway network in the world with a total length of 68,442 route kilometers (km). It runs nearly 22,000 trains daily, out of which around 13,500 are passenger trains that carry more than 2.3 crore passengers and about 8,500 are freight trains that carry around 3.5 million tonnes of freight per day. The humungous magnitude of operations of Indian Railways can be appreciated from the fact that every day it moves people nearly equal to the population of Australia.

In the recent past, various railway reforms have been initiated at the organizational and functional level to enhance efficiency, safety, innovations, and transparency and to achieve faster project execution. Participative models for rail connectivity, the introduction of private train operators, and the focus on encouraging participation of the private sector in infrastructure up-gradation and station development are noteworthy reforms.

Indian Railways has prepared a National Rail Plan (NRP) for India – 2030 which envisages creating a “Future Ready” Railway system. The NRP is aimed to formulate strategies based on both operational capacities and commercial policy initiatives to increase the modal share of the Railways in freight to 45%. The objective of the Plan is to create capacity ahead of demand by 2030.

As part of this Plan, Vision 2024 has been launched for accelerated implementation of certain critical projects by 2024 such as 100% electrification, multi-tracking of congested routes, up-gradation of speed to 160 kmph on certain routes, up-gradation of speed to 130 kmph on all other Golden quadrilaterals – Golden Diagonal routes and elimination of all Level Crossings on such routes. While new sections are being progressively commissioned for traffic in the Eastern and Western Dedicated Freight Corridors, new Dedicated Freight Corridors have been identified and expansion of rail networks in Jammu and Kashmir and the North-Eastern region of the country is being emphasized. RVNL share price target for 2025 is Rs 134.

RVNL share price target 2025
RS 134

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RVNL Share Price Target 2030

RVNL’s major client is the Indian Railways and other clients include various central and state government ministries, departments, and public sector undertakings.

As part of its original mandate, RVNL has successfully set up five project-specific Special Purpose Vehicles (SPVs) for the execution of important rail connectivity projects in PPP mode. Four SPVs have already been commissioned for traffic. More SPVs are in different stages of being set up under the Indian Railways’ participative policy framework.

RVNL has also recognized the vast potential for building a High-Speed Rail Network in the country and with the approval of the President of India had formed High-Speed Rail Corporation of India Ltd. (HSRC), as its subsidiary. Feasibility studies for Delhi-Kolkata, Delhi-Mumbai, Mumbai-Chennai, Mumbai-Kolkata (up to Nagpur in 1st Phase), DelhiChennai and Delhi-Chandigarh-Amritsar have been undertaken by HSRC.

Subsequently, HSRC has been renamed as HSRC Infra and repurposed to participate in the bidding of projects for RVNL and to provide project management consultancy services.

Strengths of RVNL:

  • RVNL has successfully mobilized funds for the construction of new lines by creating project-specific SPVs with strategic stakeholders. Its large capital base can be leveraged to raise funds as per its original mandate.
  • Ministry of Railways has delegated the authority to RVNL for sanctioning estimates within prescribed limits and for awarding contracts of any value for the projects in hand enabling RVNL to implement projects faster.
  • As RVNL can award large value contracts, it has been able to attract the best infrastructure companies in India.
  • It has developed expertise in undertaking all stages of project development – from concept to commissioning.
  • RVNL has developed the requisite skills and experience to follow ADB procedures for contracting and ensuring Resettlement and Rehabilitation of Project Affected Persons to implement socio-economic safeguards.
  • It has introduced large-scale mechanization in all aspects of construction to achieve high-quality output.
  • It has refined its tendering processes and introduced innovative concepts like multipackage tenders resulting in faster decision making and savings in overall costs
  • It has a sound and robust financial management system, allowing for effective monitoring and control of expenditure.
  • HSRC Infra Services Ltd. a subsidiary of RVNL is available to provide consultancy services and also for the implementation of high-speed corridors in the time to come. This company will be a new vertical for future Business Development.

RVNL share price target for 2030 is Rs 284.

RVNL share price target 2030
Rs 284

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RVNL Share Price Target 2022, 2023, 2024, 2025 and 2030

YearShare Price Target
RVNL share price target 2022Rs 84
RVNL share price target 2023Rs 97
RVNL share price target 2024Rs 115
RVNL share price target 2025Rs 134
RVNL share price target 2030Rs 284

Frequently Asked Questions

Is RVNL a good buy for long term?

No, RVNL is not a good buy for the long term as it is a PSU company with low growth potential and its business model.

Can I hold RVNL share?

You can hold RVNL shares, but you can’t expect the share to grow rapidly as it is a PSU company with not so great business model, RVNL share price will move slowly. It is better to invest in some other companies with a good business model for good returns in the long run, rather than holding RVNL.

What is the future of RVNL?

RVNL share price target for 2022 is Rs 84, RVNL share price target for 2023 is Rs 97, RVNL share price target for 2024 is Rs 115, RVNL share price target for 2025 is Rs 134, and RVNL share price target for 2030 is Rs 284.

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