Rail Vikas Nigam Ltd., incorporated in the year 2003, is a Mid Cap company (having a market cap of Rs 6442.71 Crore) operating in Construction sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 3852.41 Crore, up 18.59 % from last quarter Total Income of Rs 3248.59 Crore and up 2.10 % from last year same quarter Total Income of Rs 3773.14 Crore. Company reported net profit after tax of Rs 267.88 Crore in latest quarter.
Investment Rationale
Looking at the strong prospects the brokerage believes the stock is available at reasonable valuation. The brokerage feels investors can buy the stock on dips in Rs 29-30 band and add further in Rs 25-26 band for base case target of Rs 33 (7.0x FY23E EPS) and bull case target of Rs 35 (7.5x FY23E EPS). However, stake sale by the Government (to bring down its stake to 75%) would remain an overhang for the stock in the near term.
