Rail Vikas Nigam Q2 Results Review - Order Win Continues: IDBI Capital

IDBI Capital Report

Rail Vikas Nigam Ltd. execution in H1 FY24 has increased by 10% YoY and Ebitda margin are maintained YoY at 6.2%. Company has commenced execution of competitive bided order and margin in this is better at 6-10% versus the margin it has seen in nomination orders at 6% only.

Order book is moving away from low margin nomination orders and it contributes 48% to its book. Importantly, order win has been consistent for Rail Vikas Nigam and it has received new orders and scope change of Rs 72 billion in Q2 FY24.

Q2 FY24 order book of Rs 673 billion provides revenue visibility (three times trailing twelve months revenue) and Rail Vikas Nigam has reiterated its guidance of order book of Rs 1 trillion in the next couple of quarters.

We have modeled revenue CAGR of 12% over FY23- 25E. We value RVNL on SOTP basis to arrive at target price of Rs 149, in this we value its engineering, procurement and construction business at 20 times FY25E EPS. 'Hold' rating.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.