RVNL – Q2 FY20 (Unaudited – Cons.)
Share price – 24
Total income from operations at 3,765 Cr
1,726 Cr (118.12%) YoY | 2,846 Cr (32.25%) QoQ
Half year revenue: 6,611 Cr Vs. 3,623 Cr (82.47%)
Net Profit of 220.34 Cr
85.62 Cr (158.73%) YoY 182.15 (20.87%) QoQ
Half year ending Net Profit: 402.49 Cr Vs. 253.83 Cr (58.82%)
EPS (in Rs.) 1.06
0.41 YoY | 0.87 QoQ
Half Year ending EPS: 1.93 Vs. 1.22
View: Strong result. YoY and QoQ revenue up and profit significantly up in YoY due to topline growth is exceptionally well in YoY.
Business Highlights & Updates:
EBITDA in Q2FY20 is around INR 269.5 Cr Vs. 163.5 Cr in Q2FY19 Vs. 223.06 Cr in Q1FY20. Therefore up by 64.8% in YoY and 20.6% in QoQ.
EBITDA in H1FY20 is around INR 492.2 Cr Vs. 322.02 Cr in H1FY19 therefore up by 52.7%.
ROE and ROCE is around 9% and 13% respectively and book value per share is around INR 18 and share is currently trading at 1.2x of its book value. Company is currently trading at annualized PE of around 6.5 which is fair as per Industry benchmark. Promoter (Govt of India) holding in the company is around 87.8% and mutual fund hold around 2.6% in the company. Company has debt of around 3.4K Cr as of Sep 2019.
Share price high 29.8 and now 23.8. RVNL Rail Vikas Nigam Limited is an organisation associated with Indian Railways whose task is to build engineering works required by Indian Railways. Projects to be executed by RVNL are assigned by the Ministry of Railways (MoR). RVNL expenditure is largely dependent on the budgetary allocations by the Ministry of Railways. RVNL is a proud Mini-Ratna CPSE under the Ministry of Railways, Government of India.
Long term investor should continue with the company once the govt dilute / divestment the stake the share should be gainer in longer run. Share support price is INR 21.
Short term also share is good gainer.
Opportunities: Based on the current railway infrastructure and enhancement of overall railway infrastructure in all over India there is ample opportunity in this field.
Risk: Govt company highly dependent upon political environment with lots of uncertainties towards govt policy and fund allocation.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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