Sat Feb 01 03:40:00 UTC 2025: **Axis Securities Predicts 5% Upside for Rail Vikas Nigam Ltd (RVNL) Shares**

**MUMBAI, INDIA – [Date of Publication]** – Axis Securities has issued a “Buy” rating for Rail Vikas Nigam Ltd (RVNL) shares, setting a target price of Rs 501, representing a potential 5.15% increase within three to six months. This follows a strong week for RVNL, with shares rising 9.01% on Friday alone, marking the fourth consecutive day of gains.

The brokerage firm’s bullish outlook stems from the increased railway capex allocation in the Union Budget 2024-25, creating significant growth opportunities for RVNL across its business segments. Axis Securities anticipates further railway investment in the upcoming budget, further bolstering RVNL’s prospects. They project improved EBITDA margins, reaching around 6% in FY25-26E, driven by the addition of higher-margin variable-priced projects to the order book.

RVNL’s substantial order book of Rs 83,221 crore (as of June 30, 2024) provides strong revenue visibility for the next 3-4 years, supporting projected 8% CAGR revenue growth from FY23 to FY26E. The company’s robust financial position, including a clean balance sheet, strong return ratios, and a healthy dividend payout, further reinforces Axis Securities’ recommendation.

Separately, RVNL announced the removal of its joint venture, Dighi Roha Rail Ltd, from the register of companies. The state-run firm, which holds a 72.84% government stake (as of December 2024), serves as an executing arm for Indian Railways, managing projects from conception to commissioning.

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