Rail Vikas Nigam Limited (RVNL) is an Indian central public sector enterprise (PSU) that serves as the construction arm of the Ministry of Railways, focusing on project implementation and transportation infrastructure development. Incorporated in 2003, RVNL was established to address the country’s growing infrastructural needs and to expedite project execution, as well as to create a railway equipment construction company. RVNL holds the prestigious status of a Navratna PSU in India, operating under the administrative control of the Ministry of Railways, Government of India.
RVNL handles project execution from concept to commissioning, creating project-specific Special Purpose Vehicles (SPVs) for efficient management. Its mandate includes the mobilization of extra-budgetary resources (EBRs) through a combination of equity and debt facilitated via these SPVs. This approach enables RVNL to effectively fund and implement large-scale projects, contributing significantly to the development of India’s railway infrastructure.
History of Rail Vikas Nigam Limited
Rail Vikas Nigam Limited (RVNL) was established to implement the National Rail Vikas Yojana (NRVY), a project aimed at developing railway infrastructure in India. The NRVY was announced by Prime Minister Atal Bihari Vajpayee during his Independence Day speech on 15 August 2002, from the ramparts of the Red Fort. It was formally launched by Vajpayee on 26 December 2002, and RVNL was incorporated under the Companies Act, 1956 on 24 January 2003. RVNL’s primary objectives are to augment the capacity of rail infrastructure and to raise extra budgetary resources for special purpose vehicle projects.
RVNL launched its initial public offering (IPO) on 29 March 2019, becoming the third railways-related PSU to do so, following RITES and IRCON. The company offered a 12% stake at a price range of ₹17-₹19 per share. The IPO was subscribed 1.78 times by its close on 3 April, raising ₹481 crore (US$58 million). Subsequently, RVNL was listed on the Bombay Stock Exchange and the National Stock Exchange on 19 April 2019.
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | |
| Promoters + | 78.20% | 72.84% | 72.84% | 72.84% | 72.84% |
| FIIs + | 1.75% | 2.32% | 2.59% | 2.32% | 3.13% |
| DIIs + | 5.75% | 5.83% | 6.08% | 6.18% | 6.77% |
| Public + | 14.30% | 19.01% | 18.50% | 18.66% | 17.25% |
| No. of Shareholders | 8,86,922 | 13,41,098 | 13,97,699 | 18,44,551 | 20,74,709 |
The shareholding patterns of Rail Vikas Nigam Limited (RVNL) reflect notable changes over the past few quarters, indicating a dynamic shift in ownership structure and investor interest.
Promoter Holding
Promoter ownership has seen a decline, decreasing from 78.20% in June 2023 to 72.84% by March 2024, and this percentage has remained stable through June 2024. This reduction may suggest a strategic move to increase liquidity in the stock and possibly attract more institutional and public investors.
Foreign Institutional Investors (FIIs)
Foreign Institutional Investors (FIIs) have increased their stake in RVNL, moving from 1.75% in June 2023 to 3.13% by June 2024. This steady rise indicates growing confidence among international investors regarding RVNL’s growth potential and operational performance.
Domestic Institutional Investors (DIIs)
Similarly, Domestic Institutional Investors (DIIs) have also shown a positive trend, with their ownership increasing from 5.75% in June 2023 to 6.77% in June 2024. The increasing stake of DIIs suggests that local institutional confidence in the company’s prospects is on the rise, which may also influence retail investor sentiment positively.
Public ownership has experienced fluctuations during this period, starting at 14.30% in June 2023 and rising to 19.01% in September 2023, before slightly decreasing to 17.25% by June 2024. Despite these fluctuations, the overall increase in the number of shareholders—from 8,86,922 in June 2023 to 20,74,709 in June 2024—highlights growing retail investor interest and engagement with the company.
Latest News on Rail Vikas Nigam Ltd
Rail Vikas Nigam Limited (RVNL) has recently signed a Memorandum of Understanding (MoU) with Engineers India Limited (EIL) to collaborate on various projects, enhancing their operational capabilities. This strategic partnership comes amid fluctuations in RVNL’s stock performance, which has seen gains following the announcement of new orders, indicating positive investor sentiment. Additionally, RVNL has been selected as the L1 (lowest) bidder for a significant project valued at ₹739 crore aimed at developing distribution infrastructure in Himachal Pradesh. These developments position RVNL as a key player in the infrastructure sector and reflect its commitment to enhancing regional connectivity and service delivery.
Below are the trading platforms that you can use to purchase Rail Vikas Nigam Limited shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| October 2024 | 506.15 | 440.13 |
| November 2024 | 526.40 | 457.74 |
| December 2024 | 531.66 | 462.32 |
In October 2024, the maximum price of Rail Vikas Nigam shares is expected to reach ₹506.15, while the minimum price is anticipated to be ₹440.13. Moving into November 2024, Rail Vikas Nigam’s maximum price is projected to increase to ₹526.40, with a minimum price of ₹457.74. Finally, as we step into December 2024, the maximum price for Rail Vikas Nigam is forecasted to be ₹531.66, and the minimum price is expected to be ₹462.32.
| When | Maximum Price | Minimum Price |
| January 2025 | 536.98 | 413.06 |
| February 2025 | 542.40 | 417.23 |
| March 2025 | 553.80 | 426.00 |
| April 2025 | 548.31 | 421.78 |
| May 2025 | 532.34 | 409.49 |
| June 2025 | 556.30 | 427.92 |
| July 2025 | 545.39 | 419.53 |
| August 2025 | 562.26 | 432.51 |
| September 2025 | 569.00 | 437.70 |
| October 2025 | 583.80 | 449.08 |
| November 2025 | 598.39 | 460.30 |
| December 2025 | 625.32 | 481.02 |
As we move through 2025, Rail Vikas Nigam Ltd is projected to experience monthly price fluctuations. In January, the maximum price is expected to reach ₹536.98, with a minimum of ₹413.06. February’s forecast shows a peak of ₹542.40 and a low of ₹417.23. In March, the maximum is anticipated at ₹553.80, while the minimum could be ₹426.00. April may see a maximum of ₹548.31 and a minimum of ₹421.78. By June, the maximum price is expected at ₹556.30, with a minimum of ₹427.92. As the year progresses, December is projected to conclude with a maximum price of ₹625.32 and a minimum of ₹481.02.
| When | Maximum Price | Minimum Price |
| January 2026 | 644.08 | 495.45 |
| February 2026 | 627.98 | 483.06 |
| March 2026 | 640.54 | 492.72 |
| April 2026 | 653.61 | 502.78 |
| May 2026 | 647.14 | 497.80 |
| June 2026 | 663.32 | 510.24 |
| July 2026 | 650.31 | 500.24 |
| August 2026 | 670.42 | 515.71 |
| September 2026 | 683.83 | 526.03 |
| October 2026 | 701.61 | 539.70 |
| November 2026 | 719.15 | 553.19 |
| December 2026 | 737.13 | 567.02 |
| When | Maximum Price | Minimum Price |
| January 2027 | 744.50 | 572.69 |
| February 2027 | 763.59 | 587.38 |
| March 2027 | 793.37 | 610.29 |
| April 2027 | 777.82 | 598.32 |
| May 2027 | 755.16 | 580.89 |
| June 2027 | 789.14 | 607.03 |
| July 2027 | 773.67 | 595.13 |
| August 2027 | 797.60 | 613.54 |
| September 2027 | 825.51 | 635.01 |
| October 2027 | 846.98 | 651.52 |
| November 2027 | 868.15 | 667.81 |
| December 2027 | 889.86 | 684.50 |
| When | Maximum Price | Minimum Price |
| January 2028 | 907.65 | 698.19 |
| February 2028 | 930.93 | 716.10 |
| March 2028 | 967.23 | 744.02 |
| April 2028 | 948.27 | 729.44 |
| May 2028 | 920.65 | 708.19 |
| June 2028 | 962.08 | 740.06 |
| July 2028 | 943.21 | 725.55 |
| August 2028 | 972.38 | 747.99 |
| September 2028 | 1,006.42 | 774.17 |
| October 2028 | 1,032.58 | 794.30 |
| November 2028 | 1,058.40 | 814.15 |
| December 2028 | 1,084.86 | 834.51 |
| When | Maximum Price | Minimum Price |
| January 2029 | 1,106.56 | 851.20 |
| February 2029 | 1,134.93 | 873.02 |
| March 2029 | 1,179.19 | 907.07 |
| April 2029 | 1,156.07 | 889.28 |
| May 2029 | 1,122.40 | 863.38 |
| June 2029 | 1,172.91 | 902.24 |
| July 2029 | 1,149.91 | 884.54 |
| August 2029 | 1,185.47 | 911.90 |
| September 2029 | 1,226.96 | 943.82 |
| October 2029 | 1,258.86 | 968.36 |
| November 2029 | 1,290.34 | 992.57 |
| December 2029 | 1,322.59 | 1,017.38 |
| When | Maximum Price | Minimum Price |
| January 2030 | 1,349.05 | 1,037.73 |
| February 2030 | 1,383.64 | 1,064.34 |
| March 2030 | 1,437.60 | 1,105.85 |
| April 2030 | 1,409.41 | 1,084.16 |
| May 2030 | 1,368.36 | 1,052.58 |
| June 2030 | 1,429.94 | 1,099.95 |
| July 2030 | 1,401.90 | 1,078.38 |
| August 2030 | 1,445.26 | 1,111.74 |
| September 2030 | 1,495.84 | 1,150.65 |
| October 2030 | 1,534.73 | 1,180.56 |
| November 2030 | 1,573.10 | 1,210.08 |
| December 2030 | 1,612.43 | 1,240.33 |
As we move through 2030, Rail Vikas Nigam Ltd is expected to showcase significant price movements. In January, the maximum price is projected to be ₹1,349.05, with a minimum of ₹1,037.73. The forecast for February anticipates a maximum of ₹1,383.64 and a minimum of ₹1,064.34. March is expected to see a peak of ₹1,437.60, while the minimum may reach ₹1,105.85. In April, prices might max out at ₹1,409.41, with a minimum of ₹1,084.16. By June, the maximum is projected to rise to ₹1,429.94, while the minimum could be ₹1,099.95. As we approach December, it is anticipated that the maximum price will reach ₹1,612.43, with a minimum of ₹1,240.33, indicating a strong upward trend throughout the year.
Financial Condition of Rail Vikas Nigam Limited: Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | TTM | |
| Sales + | 14,531 | 15,404 | 19,382 | 20,282 | 21,733 | 20,351 |
| Expenses + | 13,744 | 14,524 | 18,200 | 19,037 | 20,386 | 19,176 |
| Operating Profit | 787 | 880 | 1,182 | 1,244 | 1,346 | 1,175 |
| OPM % | 5% | 6% | 6% | 6% | 6% | 6% |
| Other Income + | 266 | 757 | 809 | 1,004 | 1,183 | 1,164 |
| Interest | 41 | 458 | 564 | 581 | 568 | 560 |
| Depreciation | 20 | 23 | 21 | 22 | 21 | 22 |
| Profit before tax | 991 | 1,156 | 1,406 | 1,644 | 1,939 | 1,757 |
| Tax % | 20% | 19% | 23% | 23% | 25% | |
| Net Profit + | 790 | 941 | 1,087 | 1,268 | 1,463 | 1,347 |
| EPS in Rs | 3.79 | 4.51 | 5.22 | 6.08 | 7.02 | 6.45 |
| Dividend Payout % | 30% | 35% | 35% | 35% | 30% |
Rail Vikas Nigam Limited (RVNL) has shown a commendable financial performance over the past few years, with consistent growth in sales and profits. The company’s sales increased from ₹14,531 crores in March 2020 to an estimated ₹21,733 crores in March 2024, reflecting a compounded annual growth rate (CAGR) of approximately 10.5%. This upward trajectory indicates RVNL’s successful expansion in the railway sector and effective execution of its projects.
In terms of expenses, RVNL’s figures rose from ₹13,744 crores in March 2020 to ₹20,386 crores in March 2024, highlighting the company’s ability to manage costs while scaling its operations. The operating profit has also seen an increase, climbing from ₹787 crores in March 2020 to ₹1,346 crores in March 2024, maintaining a stable operating profit margin (OPM) of around 6%. This consistency in OPM suggests effective operational management and cost control measures.
Other income for RVNL has shown significant growth, rising from ₹266 crores in March 2020 to ₹1,183 crores in March 2024. This increase in other income could be attributed to strategic investments and diversified revenue streams, enhancing the company’s overall financial stability.
The profit before tax has nearly doubled from ₹991 crores in March 2020 to ₹1,939 crores in March 2024, indicating robust profitability and efficient resource utilization. The tax rate has fluctuated slightly, reaching 25% in the latest fiscal year, which reflects RVNL’s commitment to complying with regulatory requirements while optimizing its tax strategies.
Net profit figures have similarly improved, rising from ₹790 crores in March 2020 to ₹1,463 crores in March 2024, translating into healthy earnings per share (EPS) growth from ₹3.79 to ₹7.02. This EPS growth is a positive signal for investors, indicating the company’s increasing profitability and return on investment.
The dividend payout ratio has remained stable, reflecting RVNL’s commitment to returning value to its shareholders while retaining sufficient earnings for reinvestment. The dividend payout was 30% for the most recent fiscal year, indicating a balanced approach between rewarding shareholders and funding growth initiatives.
FAQS
As of 09th October 2024, the current share price of Rail Vikas Nigam is ₹480.
Rail Vikas Nigam’ share prices ranging from a projected high of ₹625.32 to an anticipated low of ₹409.49.
The expected maximum price prediction for 2030 is ₹1,612.43.
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Conclusion
In conclusion, Rail Vikas Nigam Limited (RVNL) has established itself as a key player in India’s infrastructure development, particularly in railway projects. Since its inception in 2003, RVNL has focused on efficient project execution and mobilizing resources through innovative financing strategies. The company’s shareholding patterns indicate a healthy shift towards increased participation from foreign and domestic institutional investors, reflecting growing confidence in its potential.
Looking ahead, RVNL’s share price targets suggest a promising upward trajectory through 2030, with significant increases projected annually. Financially, RVNL has shown consistent revenue growth over the past five years, despite rising expenses, leading to stable operating profits.
What did we learn?
- 1 History of Rail Vikas Nigam Limited
- 2 Shareholding Patterns of Rail Vikas Nigam Limited
- 3 Latest News on Rail Vikas Nigam Ltd
- 4 How to purchase Rail Vikas Nigam Limited shares?
- 5 Rail Vikas Nigam Limited Share Price Target: 2024, 2025 to 2030
- 5.1 Rail Vikas Nigam Limited Share Price Target 2024
- 5.2 Rail Vikas Nigam Limited Share Price Prediction 2025
- 5.3 Rail Vikas Nigam Limited Share Price Prediction 2026
- 5.4 Rail Vikas Nigam Limited Share Price Target 2027
- 5.5 Rail Vikas Nigam Limited Share Price Target 2028
- 5.6 Rail Vikas Nigam Limited Share Price Target 2029
- 5.7 Rail Vikas Nigam Limited Share Price Prediction 2030
- 6 Financial Condition of Rail Vikas Nigam Limited: Last 5 years
- 7 FAQS
- 8 Conclusion
