The Indian subcontinent, a tapestry of diverse cultures, geographies, and economies, is connected seamlessly by a network of iron rails stretching from the Himalayas in the north to the tropical shores of Kanyakumari in the south, from the landscapes of Rajasthan in the west to the hills of Assam in the east. The inception of the Indian Railway system dates back to 1853, when the first train ran between Bombay and Thane. Little did the engineers and visionaries of that era know that their humble creation would evolve into the world’s fourth-largest railway network, ferrying over 20 million people and moving millions of tons of freight every day. This remarkable railway system has not only been a vehicle for economic progress but also a unifier of a diverse and geographically expansive nation. It’s more than just tracks and trains; it’s the lifeline that binds the multifaceted fabric of Indian society.
In fact, for many remote and rural communities, the railways are the only connection to the broader world, offering them access to education, healthcare, and economic opportunities that would otherwise remain beyond their reach. In a network as vast and complex as this, development and modernization are constant requirements. Rail Vikas Nigam Limited (RVNL), a Mini-Ratna PSU, was established under the Ministry of Railways in 2003. RVNL is the driving force behind the scenes, diligently working to ensure that India’s rail infrastructure is not only maintained but also enhanced for the generations to come. In this article, we’ll dive deeper into RVNL share price, its future market trajectory and price predictions for 2023 to 2030.
Rail Vikas Nigam Limited (RVNL): A Quick Introduction
Rail Vikas Nigam Limited (RVNL) is an organization few outside the industry know, yet millions depend on. Behind the world’s fourth-largest railway network, which supports more than 20 million passengers and over 3 million tons of freight every day, stands the towering contribution of RVNL. It serves as the backbone of India’s rail infrastructure, ensuring that the wheels of this vast system never stop turning.
Established in 2003 under the Ministry of Railways, RVNL is a Mini-Ratna PSU (Public Sector Undertaking). Its primary objective is to create rail infrastructure, catalyzing socio-economic development across the length and breadth of India. To put it plainly, RVNL builds railway lines, stations, and facilities that allow India’s locomotives to connect its diverse regions. Over the years, RVNL has garnered a reputation for completing projects efficiently, both in terms of time and cost, a feat rare in government organizations worldwide.
The organization is responsible for overseeing the entire lifecycle of a project, from its conceptual stage through to its final commissioning. RVNL accomplishes this by establishing Special Purpose Vehicles (SPVs) tailored to each project. Additionally, RVNL’s mandate involves securing extra-budgetary resources (EBRs) through a combination of equity and debt facilitated via these specialized SPVs.
RVNL: Since Inception And Roadmap
Rail Vikas Nigam Limited (RVNL) was founded with the primary mission of executing the National Rail Vikas Yojana (NRVY), a significant initiative aimed at the development of India’s railway infrastructure. The NRVY was first announced by the then Prime Minister Atal Bihari Vajpayee during his Independence Day speech on August 15, 2002, from the historic Red Fort.
The project was officially inaugurated by Vajpayee later that year on December 26, 2002. Subsequently, RVNL was formally established on January 24, 2003, under the provisions of the Companies Act, 1956. The organization was set up with dual primary aims: first, to expand the capacity of existing rail infrastructure, and second, to generate extra-budgetary funds for projects through Special Purpose Vehicles (SPVs).
On the financial front, RVNL made its debut on the public markets with an Initial Public Offering (IPO) on March 29, 2019. This marked it as the third PSU in the railway sector to launch an IPO, following in the footsteps of RITES and IRCON. The IPO involved offering a 12% stake in the company, with share prices ranging between ₹17 and ₹19. By the time the IPO closed on April 3, it was oversubscribed by 1.78 times, raising a substantial ₹481 crore (approximately US$60 million). RVNL subsequently became listed on two major Indian stock exchanges, the Bombay Stock Exchange and the National Stock Exchange, on April 19, 2019.
Subsidiaries of Rail Vikas Nigam Limited
High-Speed Rail Corporation of India Limited
Among the key subsidiaries of RVNL is the High-Speed Rail Corporation of India Limited (HSRC). Established in 2012 as a Special Purpose Vehicle (SPV), HSRC is solely dedicated to the task of rolling out high-speed rail projects across India. It’s a crucial part of RVNL’s future-forward vision for the Indian railway system, aiming to revolutionize the way people travel by introducing high-speed corridors that can substantially reduce travel time.
Kinet Railway Solutions Ltd
RVNL has also ventured into the private sector by incorporating Kinet Railway Solutions Ltd. This subsidiary serves as an SPV and is responsible for signing manufacturing-cum-maintenance agreements with the Ministry of Railways. The creation of Kinet Railway Solutions Ltd signifies RVNL’s commitment to not just develop but also maintain the railway infrastructure to the highest standards.
Kyrgyzindustry-RVNL
Expanding its reach beyond Indian borders, RVNL has formed a 50:50 joint venture with Kyrgyz company Kyrgyzindustry, named Kyrgyzindustry-RVNL. This venture aims to develop rail, road, and other essential infrastructure in Kyrgyzstan. The company made this development public to the Securities and Exchange Board of India (SEBI) on December 10, 2022, indicating RVNL’s ambitions to become a global player in the field of infrastructure development.
These subsidiaries further underscore the multifaceted role that RVNL plays in both domestic and international scenarios.
RVNL Share: Price History
RVNL first made its appearance on the public markets with an Initial Public Offering (IPO) on March 29, 2019. Priced at a modest range of ₹17-₹19 per share, the IPO was a hit, being oversubscribed 1.78 times and raising ₹481 crore (about US$60 million). The company was subsequently listed on both the Bombay Stock Exchange and the National Stock Exchange on April 19, 2019. This successful launch was a testament to the credibility and potential investors saw in this government-owned entity.
The early trading days post-IPO were met with a relatively steady performance. Investors were cautiously optimistic, balancing RVNL’s strong governmental backing with the challenges inherent in India’s complex railway infrastructure landscape. RVNL share price hovered around ₹15-₹30 in 2020. However, in early 2021, RVNL share price showed signs of a bullish rally as it climbed above ₹30 and maintained a buying momentum.
RVNL share price made a high of ₹43 in October but failed to continue further as it soon met selling pressure and corrected downward. The price continued to decline and touched the ground near ₹31 in January of 2022. The price continued to consolidate around ₹30 till September. In October, RVNL share price again met buying pressure and surged toward ₹75 in December.
RVNL’s share price continued to maintain a buying momentum, and it started 2023 on a bullish note. In April, RVNL’s share price skyrocketed as it made a high of ₹141 in May. Currently, the momentum is favoring buyers as RVNL share faces low selling pressure near resistance levels.
RVNL Share Price: Technical Analysis
Recently, the RVNL share price experienced a solid bullish trend, which has brought more buyers near the immediate resistance levels. The price has been on a steady upward trajectory since April’s recovery rally. After breaking above the ₹85 mark, RVNL shares sparked an intense buying momentum and surged exponentially. The market was previously heavily influenced by poor performance and the COVID-19 pandemic; however, RVNL showed a strong recovery, as seen on the daily price chart, and maintained its price momentum. Despite facing intense bearish domination in the past, RVNL’s share has managed to display an uptrend and is now well above the bearish territory. A thorough technical analysis of RVNL’s share price reveals bullish indicators, which may soon send the price to new resistance levels.
According to TradingView, the RVNL share price is currently trading at ₹138.3, reflecting an increase of 5.5% in the last 24 hours. Our technical evaluation of RVNL’s price indicates that the current bullish momentum may soon fade as bears are attempting to reverse the trend from the upcoming resistance at ₹145; however, bulls are trying to prevent the price from dropping below the consolidated level of ₹110. Examining the daily price chart, RVNL’s share price has found support near the ₹128 level, from which the price gained bullish momentum and broke above multiple Fib channels. As RVNL’s price continues to trade above the EMA20, bulls are gaining confidence to open further long positions and send the stock price to test its upcoming resistance. The Balance of Power (BoP) indicator is currently trading in a positive region zone at 0.77 as buyers hold momentum in a stable region.
To thoroughly analyze the price of RVNL’s shares, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a surge as RVNL’s price made an upswing. The trend line is currently trading around the overbought region as it trades at level 74, hinting that further upward correction is on the horizon. It is anticipated that RVNL’s share will soon attempt to break above its 23.6% Fibonacci level to achieve its short-term bullish goals of around ₹145. If bears fail to plunge below the current 0.038 Fibonacci region, a skyrocketing trend might be on the horizon.
As the SMA-14 continues its upward swing by trading above 59-level, it trades slightly below the RSI line, potentially holding promises of the stock’s upward movement on the price chart. If RVNL’s shares continue to surge, it can pave the way to resistance at ₹145. A breakout above will drive the share price toward the upper limit of the Bollinger band at ₹160.
Conversely, if RVNL fails to hold above the critical support level of ₹128, a sudden collapse may occur, resulting in further price declines and causing the RVNL shares to trade near the Bollinger band’s lower limit of ₹110. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to ₹85.
RVNL Share Price Prediction By Blockchain Reporter
RVNL Share Price Prediction 2023
In 2023, RVNL’s share price is expected to hold an average of around ₹120. The minimum price could dip to about ₹85, while on the optimistic side, we could see it surge up to ₹160. These figures take into account RVNL’s diversified infrastructure projects, its reliable governmental backing, and India’s continued focus on enhancing its rail network.
RVNL Share Price Prediction 2024
Moving into 2024, RVNL’s share price is likely to witness an upward trend, averaging at approximately ₹152. A potential low for this year could be around ₹113, and the upper end might reach ₹192. This projection is built on the assumption that RVNL’s role in India’s infrastructure development will continue to grow, thereby attracting more investors.
RVNL Share Price Prediction 2025
By 2025, the share price is projected to average ₹183. The minimum share price could fall around ₹138, and the bullish high might be as much as ₹215. The anticipated growth in the share price could be a result of the company’s increased market share, successful project completions, and the commencement of new lucrative ventures.
RVNL Share Price Prediction 2026
In 2026, the forecast average price for RVNL’s shares could be around ₹210. The lowest the shares might go is estimated at ₹161, with a maximum that could peak at ₹259. The outlook for this year integrates potential technological advancements in the railway sector and RVNL’s adaptability to them.
RVNL Share Price Prediction 2027
Come 2027, RVNL’s share price is expected to average at ₹238. The minimum price might settle at around ₹186, while the maximum could hit ₹292. This year’s prediction accounts for the potential boost in public and private investments in Indian rail infrastructure.
RVNL Share Price Prediction 2028
For 2028, RVNL’s average share price is predicted to rise to ₹268. The potential low for the year could be ₹215, while the high could reach ₹321. The upward trend in these figures may reflect RVNL’s steady progress in executing long-term projects and possibly even some profitable exits.
RVNL Share Price Prediction 2029
Entering 2029, the average share price might climb to ₹295. The minimum might hit around ₹242, and we might see a peak at around ₹348. As RVNL continues to take on increasingly ambitious projects, its financial clout and attractiveness to investors are likely to grow proportionally.
RVNL Share Price Prediction 2030
By the end of the decade, in 2030, the average share price for RVNL could soar to ₹322. The lower boundary could be around ₹270, while the higher end might breach the ₹375 mark. At this stage, RVNL could be viewed as a legacy player in infrastructure development, strengthening its position in both domestic and international markets.
RVNL Price Forecast: Expert’s Opinion
Aditya Gaggar, Director of Progressive Shares, said, “RVNL’s stock price experienced a remarkable surge, jumping from ₹56 in February 2023 to ₹144 by May 2023, without significant downturns. This rapid ascent led the stock into an overbought territory, prompting a phase of consolidation. Recently, however, the stock has regained its upward trajectory, breaking free from a Pennant and Pole formation, supported by robust trading volumes. Although the stock reached a new high, the Relative Strength Index (RSI) didn’t follow suit, creating a bearish divergence. This divergence, combined with news of an Offer For Sale (OFS), led to a price correction. Despite this, the stock’s overall upward trend remains unbroken, with a pattern target set around ₹199.”
Manoj Dalmia, CEO of Proficient Equities, said, “RVNL has been effectively using its capital to generate profit. In the last three months, its share price moved up by 15%. Investors can wait to accumulate, considering current levels. Rs 110 can be a good level to accumulate. Additionally, any closing above Rs 148 can trigger ascending moves up to Rs 170.”
RVNL Financial Performance: 2023’s First Quarter
In its financial report for the first quarter ending on June 30, 2023, Rail Vikas Nigam Limited (RVNL) showcased promising figures that underscore its robust performance. Sales for this period surged to INR 55,715.7 million, a notable increase from last year’s INR 46,407.5 million. Revenue similarly climbed to INR 58,531.8 million, up from INR 48,783.3 million the previous year.
The company’s net income also saw a healthy increase, reaching INR 3,429 million, compared to INR 2,976.7 million during the same period last year. Basic earnings per share (EPS) from continuing operations improved to INR 1.65, up from INR 1.43 a year ago. The diluted EPS from continuing operations mirrored this trend, registering at INR 1.65 compared to INR 1.43 last year.
Conclusion
As indicated in the company’s recent financial report, RVNL is on a solid growth trajectory. Not only did sales and revenue climb, but net income and earnings per share also showed a promising upward trend. These financial indicators suggest that the company is capitalizing on its opportunities and managing its operations effectively.
Backed by government initiatives and contracts, the company has been a critical player in numerous high-profile projects. This level of governmental involvement offers a level of security that is often sought by investors. Looking ahead, RVNL has a portfolio filled with diverse projects, ranging from high-speed rail to infrastructure development. Its role is likely to grow as India focuses on enhancing its rail networks, urban transit systems, and other infrastructural elements.
However, it is advised to do your own research and conduct expert analysis before investing in the volatile stock market.
Source: https://blockchainreporter.net/rvnl-share-price/