Today there was a great rise in the stock market, due to which the stock of ligaments made great profit to investors. At the same time, the shares of some companies also touched their 52 weeks high level and some were also seen doing business at a low of 52 weeks. Meanwhile, brokerage firm Antique Stock Broking has kept its views on selected railway stocks.
Brokerage firm Antique Stock Broking is not very positive about in railway stocks. In fact, the broker is seeing a risk of falling up to 48 percent in the share price of Rail Development Corporation Limited (RVNL) and IRCON International after mixed data in the March 2025 quarter.
RVNL company huge losses
RVNL recorded a net profit of Rs 478.4 crore, which is 4 percent less on a year-on-year basis. The railway company has registered a net profit of Rs 6,426.9 crore by 4 percent. Ebita declined by 5 percent to Rs 432.9 crore for the quarter, while for the quarter Ebita margin declined slightly to 6.7 percent. It has also declared the final dividend of Rs 1.72 per share for FY 2025.
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Company with strong order
The Railway Development Corporation has done a weak demonstration in FY 2025 in the fourth quarter, less than an estimate. The Railway Ministry was affected by the delay in issuing funds, which is expected to be normal to RVNL, and he estimated 10-11 percent revenue growth in FY 2026. Antique Stock Broking said that the order book of FY 2025 is worth Rs 97000 crore. It has a flow of Rs 14000 crore and has come from a new order of Rs 18000 crore.
Cell rating on target of Rs 216
The brokerage firm says that for FY 26E, RVNL has guided the flow of Rs 17,000-18,000 crore. We have cut the FY 26 E/27 EPS estimates by 8 percent/11 percent, but have kept our SOTP-based target price largely unchanged at Rs 216. For cash and investment, it rated the ‘SAIL’ with a target price of Rs 216 citing expensive valuation.
IRCON International’s profit declines
On the other hand, IRCON International declined by 15 percent to a decline of Rs 211 crore in its consolidated net profit in the March 2024 quarter, while its revenue fell by 10 percent to Rs 3,412 crore. Its Ebita declined by 21.1 percent to Rs 261.4 crore, while the margin declined to 7.7 percent for the quarter.
Keep these shares on hold
Brokerage said, ‘The order flow improved slightly in the fourth quarter of FY 2025 and reached Rs 1,40 crore. For FY 2026, IRCON armor, signal diagnostics system, hydropower sector is targeting new opportunities in areas and actively participating in the metro and electrical project tenders. We have increased the valuation multiple by 30 times for EPS business, which reflects confidence in the development strategy of the new CMD. We maintain a ‘hold’ rating with a revised target price of Rs 180.
48 percent decline may fall
IRCON International shares closed at Rs 183.60 on Friday at Rs 183.60, with a total market capitalization of more than 17,250 crores. This stock is slightly less than the target price of antique. RVNL fell nearly 2 per cent to close at Rs 398, whose total market capitalization is less than Rs 83,000 crore. Antique’s target is Rs 216, which suggests that the stock has fallen by 48 per cent.
(Note- Target brokerage firms of shares of different companies mentioned here are opinion. Aajtak.in does not take responsibility.