RVNL is up 15.47 per cent at Rs 281.40. IRCON is up 8.85 per cent at Rs 222.10.
According to a report by HDFC Securities, RVNL is a project executing agency working for and on behalf of the
It has a strong order book visibility. RVNL has diversified into non-railway projects and over the past two years it has won orders worth Rs 32,000 crore through competitive bidding.
It has also forayed into other geographies and is executing a project in Maldives and signed a MoU with Govt. of Kyrgyzstan.
The proportion of orders won through competitive bidding has been increasing, thereby reducing its dependence on Ministry of
RVNL follows an asset light business model, which helps keep its fixed asset part lower, helping it to keep its balance sheet stress free, and resulting in lower inventory days.
It has also commenced consultancy services which could lead to margin expansion, HDFC Securities said.
Its orderbook of Rs 67,000cr at the end of Q2FY24 gives a visibility of three years.
The company has a robust balance sheet and strong operating cash flows, the report said.