RAIL VIKAS NIGAM IPO TO SUBSCRIBE OR SKIP??

RAIL VIKAS NIGAM LTD

FACE VALUE – 10

ISSUE PRICE – 17-19 (0.50 Discount For Retail)

ISSUE SIZE – 480cr

ISSUE OPEN – 29th MARCH’19

ISSUE CLOSES – 3rd APRIL’19

LOT SIZE – 780

OVERVIEW :
The company with Mini Ratna-I status is offering 25.34cr shares. Government is selling about 12.12% stake in the company.
Rail Vikas Nigam Limited (RVNL) is a 100% owned PSU of Ministry of Railways (MoR) which was incorporated in 2003 with the twin objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis.

As on 31st Dec 2018 Company has an order book of Around 77,500cr with over 100+ ongoing projects.close to 43000cr projects are to be executed in next 2.5 to 3.5 years.

Companies main competitors include – Konkan Railway & Listed Players like IRCON Ltd & RITES.

FINANCIAL :

Companies Revenue from Operations has increased at a CAGR of 29% from Rs.2493cr in the FY14 To Rs.7822 crore as on March’18.

Net profit has grown at a CAGR of 15% from Rs 157cr in FY14 to Rs 570cr in FY18.

In FY19 For first 6 months company has posted Net profit on Rs.256.3 cr & 9month EPS for FY19 is Rs.2.43

EPS for FY18 – Rs 2.73 & 3 years Average EPS is Rs 2.42.

Company has paid Dividend in last 5 years -FY14 – 31.5cr, FY15 – 37.2cr,FY16 -115.1cr ,FY17 – 142cr & FY18 – 167cr.

RAIL VIKAS NIGAM has strong Financial & GOOD ORDER BOOK.THERE CAN BE GOOD LISTING GAIN & MOMENTUM CAN CONTINUE IN MEDIUM TERM ALSO.

LONG TERM – Historically No Rail Related stock has created huge wealth year on year or not given Multibagger returns.But RVNL can give 15% to 20% CAGR returns on next 5yrs in stable market condition.

Disc– All Views expressed are personal and for Educational & Study purpose only.Consult your Financial advisor before investing or taking any position based on above data.

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