This Railway Stock Will be next multi-bagger, FII has doubled their Buying,
This railway stock will be the next multi-beggar in the upcoming year.
Many investors have already invested and some are still trying to get invested in this stock.
We have recently observed that FII has increased its stakes in this stock and still buying this stock in volume. I will show everything with the facts and data.
Just continue reading and closely observe and monitor the stock and its movement in upcoming times.
When somebody buys a stock there is only one motive behind the buying is earning profit. But this is not true with selling when somebody sells there may be various reasons. There may be someone’s reason, educational requirement, or personal requirement for marriage, and there may be various concerns of the individual.
But when somebody buys a stock there is only one reason that he assumes the stock to go upward.
The stock I am talking about is railway Vikas Nigam Limited. In recent times stock has performed very well and made many investors Millionaire.
| Year | Stock Price (INR) | Annual Growth (%) |
| 2020 | 24 | 4.50% |
| 2021 | 34.75 | 44.70% |
| 2022 | 68.25 | 96.40% |
| 2023 | 181.55 | 166% |
| 2024 | 419.75 | 131.20% |
As Can see in the above table stock while trading at 24 rupees in 2020 and went up to 34 rupees in 2021.
It was almost increase of 44% in just one year. Railway Vikas Nigam Limited went to 68 from 34 with an increase of 96% in just 1 year.
Everyone thought that the stock has already increased many fold and couldn’t go beyond this level.
There may be certain retracement or a downward move. But the reality was different to general public belief.
Stock started to trade at 180 and it was increased of almost 166%.. Now the stock is trading at 420.
It has become expensive but still FII are buying the stock.
Below table shows the data on how foreign investors continually invest in this stock. Nose what will happen in this stock it will be a matter of time let’s see…
| RVNL | Dec-22 | Mar-23 | Jun-23 | Sep-23 | Dec-23 | Mar-24 | Jun-24 | Sep-24 |
| Promoters + | 78.20% | 78.20% | 78.20% | 72.84% | 72.84% | 72.84% | 72.84% | 72.84% |
| FIIs + | 2.45% | 1.53% | 1.75% | 2.32% | 2.59% | 2.32% | 3.13% | 5.05% |
| DIIs + | 6.45% | 6.51% | 5.75% | 5.83% | 6.08% | 6.18% | 6.77% | 6.33% |
| Public + | 12.92% | 13.76% | 14.30% | 19.01% | 18.50% | 18.66% | 17.25% | 15.78% |
Railway Vikas Nigam Limited has very stable promoters holding off 72.84%. We that in the last four quarters, foreign investors have increased their holding manifold.
In March 2024 foreign investors have only 2.32%s of the company but in June 2024 it has increased to 3.13% and now in September 2024 it is 5.05%.
They do not invest randomly they invest very wisely.
Therefore we can still assume that the stock may go upside down in the upcoming Times.
Railway Vikas Nigam Limited is a financially or fundamentally very sound company. We can see a lot of ups and downs in its sale. From March 2021 to March 2022 sale was increased by 25.8% while in March 23 it is increased by only 4.6%. In the current year, RVNL sale is 21,733 crore which is up by 7.2% from last year.
In the last 5 years from March 2020 to March 2024 company has never made any loss.
Sales to net profit ratio is not much better but it’s okay.
The company has a good return on equity of almost 18 to 19%.
| INR (in crores) | Mar-20 | Mar-21 | Mar-22 | Mar-23 | Mar-24 |
| Sales | 14,531 | 15,404 | 19,382 | 20,282 | 21,733 |
| SALES GROWTH | 44.4% | 6.0% | 25.8% | 4.6% | 7.2% |
| Profit before tax (PBT) | 991 | 1,156 | 1,406 | 1,644 | 1,939 |
| Profit after tax (PAT) / Net Profit | 790 | 941 | 1,087 | 1,268 | 1,463 |
| SALES TO NET PROFIT | 5.44% | 6.11% | 5.61% | 6.25% | 6.73% |
| RETURN ON EQUITY | 17.55% | 18.94% | 19.31% | 19.57% | 18.60% |
Conclusion- wherever there is money there is a risk. we do not recommend you to buy this stock . It is totally upon you . Therefore you have to invest wisely. When you are investing in a particular stock don’t invest your all money in a single stock. Always try to diversify your portfolio with different companies from different sectors.
If you have not that much of knowledge then first of all try to get some inside into that stock and then try to invest. Because altimately it’s your hard earn money and there are very high chance that you will lose them. Try to invest in fundamentally strong companies.
