3 months, 4 weeks ago

IRCON v/s RVNL: A contrasting tale of two railway infrastructure stocks

Every year, ahead of the budget, investors get excited about the prospects of incremental spending by the railways that would translate into order inflows for railway infrastructure companies. RVNL has higher revenue visibility, with a robust order pipeline that’s enough to cover four years of FY24 revenue. Now, it is not as though the fall in the order book was due to higher execution and corresponding revenue growth as sales slid by 18% year-on-year. RVNL’s H1 sales fell 15%, with the saving grace being the rise in its order book to ₹92,000 crore at September-end, up 8% versus March-end. Nominated railway orders form about 60% of RVNL’s order book.

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