Shares of Rail Vikas Nigam Ltd. fell over 5% on Thursday after the company announced its June quarter results.Net profit for the period fell by 34% from last year to ₹224 crore.
Revenue for the quarter stood at ₹4,074 crore, which is a decline of 27% from the ₹5,571.6 crore it reported during the year-ago quarter.
RVNL’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) nearly halved from last year, declining by 48% to ₹182 crore, while EBITDA margin narrowed by 180 basis points to 4.5% from 6.3% last year.
RVNL shares have declined 10% so far in the month of August.
This is the first monthly drop that the stock is witnessing after five straight months of gains.
Shares of RVNL had surged 44% in July, 9% in June, 33% in May and 13% in the month of April.Shares of RVNL had surged 44% in July, 9% in June, 33% in May and 13% in the month of April.
The railway PSU has already tripled in value this year, hitting a record high of ₹647 on July 15 before correcting to the recent lows of ₹542. Despite this, the stock is up nearly 220% so far in 2024.
RVNL had listed in late-2019 at an IPO price of ₹19 per share. Since then, the stock has given positive annual returns every single year since listing. This is the best calendar year performance for the stock so far, having surpassed the 166% surge that the stock had seen in 2023.
Post the recent correction, shares of RVNL are trading at a one-year forward price-to-earnings multiple of 61.56 times, which is well above the five-year average price-to-earnings multiple of 22.1 times for RVNL.
As per the latest shareholding pattern shared on the exchanges, India’s domestic Mutual Funds marginally increased their stake to 0.19% from 0.09% they held at the end of the March quarter.
The total number of small shareholders, those with authorised share capital of less than ₹2 lakh increased by 2 lakh in number. RVNL now has 20.5 lakh small shareholders, compared to the 18.2 lakh figure at the end of March.
Shares of RVNL are currently trading 5% lower at ₹538.85. The stock is up 367% in the last 12 months.
First Published: Aug 8, 2024 12:20 PM IST
