Tuesday, September 8, 2020

Rail Vikas Nigam ( RVNL) | Long Term Gem | A Dividend King | Future Outlook

 

RVNL Limited 

Stock/Share Price: 21.65


➽ In this article we will discuss recent development in the StockShare of Rail Vikash Nigam LIMITED in the Stock Market. This stock is available at a very good valuation and giving dividend yield of about 6% yearly. Fundamentally the stock is sound and prosperous.

Recent Key Strengths

Return on equity (ROE) improving since last 2 year

Annual Net Profits improving for last 2 years

Book Value per share Improving for last 2 years

Company with Zero Promoter Pledge

MFs increased their shareholding last quarter


Recent Weaknesses

Companies with growing costs YoY for long term projects

Decline in Net Profit with falling Profit Margin (QoQ)

Declining profits every quarter for the past 2 quarters

Low Piotroski Score : Companies with weak financials


Technical Chart 


rvnl rail vikas nigam share price  www.finvestonline.com

RVNL  stock after making a recent high of 23 was in correction and consolidation phase.

After consolidation stock a price-volume breakout is seen in the stock . Now according to chart Short term level in the stock is at the level of 23 and Mid term price target in stock is at the level of 30.

As the stock is in uptrend so in every correction long position can be initiated in the stock for further price appreciation.


Recent Valuation Summary


rvnl rail vikas nigam share price

RVNL has a market cap of Rs.4514 cr and currently trading at a P/E of 5.7 where as industrial PE average is 16.54. It means valuation of RVNL is still very cheap and has a good growth potential.


Recent Annual Results

rvnl rail vikas nigam share price www.finvestonline.com

RVNL from the 3 previous year reporting excellent Sales growth on YoY basis and Net Profit is also increasing significantly for the 3 previous year. Annual result of the company is very balanced and prosperous.

Key Balance Sheet Summary

rvnl rail vikas nigam share price www.finvestonline.com

As the company is financially sound and prosperous so its reserves and surplus also showing excellent improvement on YoY basis.

Note- RVNL stock fundamentally and technically showing excellent performance. This stock can be a long term gem and should be in the portfolio of a long term investor.


Thanks for your Precious Time.


Finvest Online
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Disclaime
r- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader,user and company that are mention on this website.We are not SEBI registered financial advisor or analyst.

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