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Rail Vikas Nigam Limited (RVNL) Fair Value & Analysis

Industrials · IN · Market cap ₹485B

RV Rail Vikas Nigam Limited RVNL · NSE
Price₹233.38
Fair Value₹110.63
Upside-52.6%
Quality44/100
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Expensive Growth
Thin margins · 4.3% net margin
Low debt · negative free cash flow
0.76% dividend yield
Trails peers (3/13)
Narrow moat 31/100
Evidence: High Range ₹74.66 – ₹160.47 Share as image

Fair value as of: Jul 12, 2026

From 17 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ₹61.85 to ₹110.63 (+78.9%) since Jun 24, 2026. Share price +3.8% over the past month.

Below-average quality, and screening another 53% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹160.47). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (₹74.66 to ₹160.47) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹622.34 ₹23.90 Fair Value ₹110.63 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ₹23.90 – ₹622.34 · fair‑value band ₹74.66 – ₹160.47 · the ₹233.38 price screens above the ₹110.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Rail Vikas Nigam Limited (RVNL) currently trades at ₹233.38, while our model-based Fair Value estimate is ₹110.63, implying the stock looks roughly 52.6% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Rail Vikas Nigam Limited generated revenue of ₹204B at a net margin of 4.3%. Revenue grew 4.2% year over year. It earns a return on equity of 9.0%. Net debt stands at ₹42.6B. Fundamentals as of Jul 12, 2026

Our scenario range runs from ₹74.66 (bear case) to ₹160.47 (bull case); at ₹233.38, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 47% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -53%, RVNL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹41.10 ₹45.04 ₹61.02 76
ROIC Compounder ₹2.11 ₹5.67 ₹8.84 72
Gordon GGM ₹26.45 ₹57.75 ₹97.16 70
All 17 models by family
DCF Models
Owner Earnings ₹38.11 ₹85.70 ₹171.94 31
Earnings-Based
Graham-Dodd ₹28.53 ₹130.52 ₹179.12 54
Lynch FV ₹34.24 ₹48.92 ₹63.59 50
PEG = 1.0 ₹34.24 ₹48.92 ₹63.59 46
EPV ₹2.11 ₹5.67 ₹8.84 59
Dividend Discount
Gordon GGM ₹26.45 ₹57.75 ₹97.16 70
DDM Multi-Stage ₹26.45 ₹47.30 ₹60.18 61
Multiples
P/E Multiple ₹66.07 ₹88.10 ₹110.12 63
P/S Multiple ₹53.49 ₹71.32 ₹89.15 58
P/B Multiple ₹53.49 ₹71.32 ₹89.15 55
EV/EBIT ₹26.65 ₹41.55 ₹56.46 53
EV/EBITDA ₹18.48 ₹30.66 ₹42.83 54
EV/Revenue ₹13.85 ₹27.53 ₹41.20 43
Asset-Based
NCAV (Graham) ₹23.55 ₹31.56 ₹47.11 50
Economic Profit
Residual Income ₹41.10 ₹45.04 ₹61.02 76
ROIC Compounder ₹2.11 ₹5.67 ₹8.84 72
Growth Earnings
Growth-Adj P/E ₹55.07 ₹78.68 ₹102.28 68

Widest divergence: DCF Models (₹85.70) versus Economic Profit (₹5.67). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹204B
Revenue growth (YoY) +4.2%
Net margin 4.3%
Return on equity 9.0%
Free cash flow −₹17.4B FY2026
P/E ratio 53.7
More key figures
Operating margin 3.9%
EPS (TTM) ₹4.33
Dividend yield 0.8%
EPS growth (YoY) -59.1%
Net debt ₹42.6B FY2026

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 42 · Market factors (momentum, volatility) 24

Profitability 36
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 8
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Rail Vikas Nigam Limited, together with its subsidiaries, engages in rail infrastructure works in India and internationally. The company undertakes rail project development and implementation, as well as provides financial resources mobilization services.

Full company description

Rail Vikas Nigam Limited, together with its subsidiaries, engages in rail infrastructure works in India and internationally. The company undertakes rail project development and implementation, as well as provides financial resources mobilization services. It also executes various railway projects, including new lines, doubling, gauge conversion, railway electrification, workshops, bridge work, mega and monumental bridges, metro and metropolitan transport projects, new lines, hilly railway projects, construction of cable stayed bridges, institutional buildings, track renewal, training institutes, railway and other safety works, traffic facilities, and road over bridges, etc. In addition, the company engages in civil engineering; equipment and engine; installation of solar energy systems, and electricity transmission and control apparatus; installation and maintenance of underwater telecommunications and power cables; contracting of electrical fittings, ports and marine construction, dams, and tunnels; business planning and implementation; consulting; construction of rail links, subways, irrigation systems, canals, water main storage towers, transmission lines, and feeder bays; installation, maintenance, and repair of solar energy collectors; and operation and maintenance of railway facilities. It serves Indian Railways, various central and state government ministries, departments, and public sector undertakings. Rail Vikas Nigam Limited was incorporated in 2003 and is based in New Delhi, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Rail Vikas Nigam Limited reported revenue of ₹204B in FY2026 versus ₹194B in FY2022, a compound +1.3%/yr. Reported net income was ₹8.7B in FY2026, compounding −5.8%/yr from FY2022.

Growth Quality 39/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹204B
Latest YoY
+2.5%
Avg. growth/yr (3Y)
+0.2%
Avg. growth/yr (5Y)
+5.8%
Avg. growth/yr (13Y)
+19.1%
Revenue +1.3%/yr
FY22 ₹194B
FY23 ₹203B
FY24 ₹219B
FY25 ₹199B
FY26 ₹204B
Net income −5.8%/yr
FY22 ₹11.1B
FY23 ₹13.4B
FY24 ₹15.5B
FY25 ₹12.8B
FY26 ₹8.7B

RVNL screens 53% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Rail Vikas Nigam Limited Fair Value". https://www.fairvalue-calculator.com/stock/RVNL

Peer Group

Engineering & Construction · 837 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Below median
Fair Value upside −53% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 2% · Below median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth 4% · Above median
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.44× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 53.7× · Pricier than 75% of peers
P/B 4.94× · Pricier than 75% of peers
P/S (TTM) 2.38× · Pricier than 75% of peers
EV/EBITDA 68.1× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 16
FUTURE 21 · sector 18
PAST 36 · sector 26
HEALTH 78 · sector 94
DIVIDEND 15 · sector 33

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%
GS Engineering & Construction Corporation 006360 34,400 KRW 23,135 KRW -33%

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Frequently asked questions

Is Rail Vikas Nigam Limited (RVNL) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ₹110.63 versus a price of ₹233.38, about −53% (overvalued).
What is the fair value of RVNL?
Our model-based fair value for Rail Vikas Nigam Limited is ₹110.63 (as of Jul 12, 2026), built from audited fundamentals. The current price is ₹233.38.
What is the quality score of RVNL?
Rail Vikas Nigam Limited has a Quality Score of 44/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Rail Vikas Nigam Limited (RVNL)?
Rail Vikas Nigam Limited reported trailing-twelve-month revenue of about ₹204B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of RVNL?
The net profit margin of Rail Vikas Nigam Limited is about 4.3%, meaning it keeps roughly 4.3% of revenue as net income. Based on the latest reported figures.
Does Rail Vikas Nigam Limited pay a dividend?
Rail Vikas Nigam Limited currently shows a dividend yield of about 0.72% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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