Rail Vikas Nigam Ltd. share price fell to the lowest level in four months as the company reported dismal numbers for the June quarter. Its net profit, revenue and operating margin all declined.
Rail Vikas Nigam's consolidated net profit declined 40% on the year to Rs 135 crore from Rs 224 crore. Revenue declined 4.1% on the year to Rs 3,909 crore during April–June from Rs 4,074 crore. Ebitda plunged 70.9% on the year to Rs 52.9 crore from Rs 182 crore.
The profit margin of the company slumped 210 basis points year-on-year to 1.4% from 4.5%.
In separate news, Rail Vikas Nigam said that the shareholding pattern in the joint venture Kinet Railway Solutions has changed. Metrowagonmash revised its stake in the joint venture to 35% from 70%. The locomotive electronic system revises the stake to 40% from 5%. However, the company's stake in the company remained unchanged at 25%.
Rail Vikas Nigam share price declined 3.93% to Rs 316.50 apiece, the lowest level since April 7. It was trading 1.2% down at Rs 325.50 apiece as of 9:52 a.m., as compared to a 0.43% advance in the NSE Nifty 50 index.
The stock declined 43.01% in 12 months and 23.2% on a year-to-date basis. Total traded volume so far in the day stood at 3.5 times its 30-day average. The relative strength index was at 25.00, which implied the stock is oversold.
Two analysts tracking the company suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 37.2%.
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