RVNL is multi-bagger?

RVNL is a multi-bagger? Wiki, Share price target, Analysis

RVNL is multi-bagger? Due to the coronavirus outbreak in India share price of RVNL is going low. That not mean the company is week. Due to low share, it can achieve a higher price. It can also become a multi-bagger. But some points are not showing indicate of multi-bagger but it can give good profit.
Rail Vikas Nigam Limited is an organization associated with Indian Railways whose task is to build engineering works required by Indian Railways. It is an extended arm of the ministry of railways. It works for the execution of railways projects such as electrification of railways line, build new rail lines, etc.

Analysis
Strong Points-
  • PE ratio(4.83) is below the India same industry (14.00)
  • he order books of RVNL is about near or more than 77 thousand crores. It is for a long period. That means the revenue of the company is good for the next few years.
  • No problem in financing it’s all done by the ministry of railway
  • Currently company have near no debt
  • All assets are light
  • RVNL working capabilities in a different area of construction and metros
  • According to the balance sheet, the company has good cash but in 2019 it becomes a week but overall cash is high.
  • Strong promoter holding. This is also an important factor.
Week point-
  • RVNL completely depends on railway ministry
  • RVNL also depends on the Respective zonal railway for work.
  • High cash low ROE
  • Decreasing MF holding
  • Highly volatile in share price over a few months.
  • Profit margin is also lower than last year.
Facts
  • The fair value of RVNL is near 0.96-1.3 rupee but the current price is near 18-19 rupee.
  • PEG ratio – 0.18
  • Cash flow negative in 2015 and 2016 bit in 2017 it shows in positive again in 2018 and 2019 it’s negative.
  • ROE percent increase in 2019 as compared to 2018, 2017 and 2016.
  • EPS also increasing from 2016 to 2019
    Revenue is also increasing from 2016 to 2019.
  • PB ratio is 0.75 it is below to moderate level (1.05)
Share price target

35-40 its may achieve in 3 years or maybe in early. this stock is for long term investment.

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