Rail Vikas Nigam Ltd.
ISIN: INE415G01027 • Market Cap: ₹46,517 Cr
The 5-Pillar Quality Audit for Rail Vikas Nigam Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (4.3%), Return on Capital Employed (10.3%), and equity compounding (8.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.49 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-1.6%) and 3Y PAT CAGR (-19.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 51.71 vs PEG of 6.31 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 72.8%, backed by 9.0% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Large Cap)
Established player in the Construction sector with an overall fundamental quality score of 48/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 10.3%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: -1.6%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking RVNL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 48/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare RVNL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Rail Vikas Nigam Ltd. (RVNL)Current | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
| Cemindia Projects Ltd. (CEMPRO) | 75/100 | ₹21,705 Cr | 36.08 | 36.6% | 0.40 | View |
Frequently Asked Questions: Rail Vikas Nigam Ltd.
Q:What is the 5-Pillar Fundamental Score for Rail Vikas Nigam Ltd. (RVNL)?
Rail Vikas Nigam Ltd. has a RupeeTools Fundamental Score of 48/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (43/100), Financial Health (71/100), Growth (18/100), Valuation (32/100), and Ownership Quality (72/100).
Q:Is RVNL fundamentally strong for long-term investment?
RVNL currently holds a moderate quality rating of 48/100. While it operates in the Construction sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does RVNL pass the Coffee Can Investing filter?
No. RVNL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does RVNL compare against other Construction peers?
Within India's Construction sector, RVNL trades at a P/E of 51.71 and generates an ROCE of 10.3%. Compare its 5-Pillar score of 48/100 against top sector peers like Larsen & Toubro Ltd. (69/100), NBCC (India) Ltd. (79/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.