LONG TERM INVESTMENT RVNL with Targets of 75-150

RVNL Executes Projects as assigned to it by Ministry of Railways. It is a Forerunner in carrying out Railway Track Laying/Signalling/Electrification/ in India. RVNL has been granted Mini Ratna-I status on 19-9-2013.
The Revenue stream of RVNL is:
(Source: www .rvnl.org/en/pages/aboutrvnl.aspx)
A consolidated management fee (inclusive of supervision charges) based on the average supervision charges allowed to Zonal Railways (8.5%).
RVNL pays dividend to MoR on the savings out of the consolidated management fee. For 2017-18, Rs 167.0 crore was paid as dividend and Rs 34.0 crore as tax on dividend which is 2.88% of project execution cost. Thus, the effective management fee of RVNL was only 5.62%.

As Indian Railways is a lifeline of Indian Economy and the business pedagogy of RVNL is unique as Projects assigned by Government of India exclusively. The Stock can be accumulated for Long Term Targets of 75-150 in this Financial Year.
Buy around 25-27 for Short Term Target of 35-40
Long Term Target of 75-150
longtermRVNLTrend Analysis

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