After Rs 17 to Rs 625, this Multibagger stocks down 60% from peak; more downside likely?

RVNL target price: Shares of Rail Vikas Nigam Ltd (RVNL) have been under pressure for quite some time and the stock has crashed nearly 60 per cent from its peak in less than two years. Even the brokerage firms continue to remain pessimistic on the counter and see more downside in the counter.

For a clear perspective, shares of Rail Vikas Nigam were listed in April 2019, when the company raised a total of Rs 477 crore via IPO, selling its shares of Rs 19 apeice. However, the stock was seen rangebound, hovering around Rs 17 levels post listing. Infact, during the covid-19 correction in March 2026, the stock was trading around sub-Rs 12 levels.

However, the stock soared sharply to Rs 625 levels, zooming 50-times from its covid-19 lows and 34 times from its IPO price hit its peak around Rs 630 in July 2024, following the election results rally. However, the stock dropped to Rs 245.05 on Friday, May 29, 2026, hitting its 52-week low and wiping more than 60 per cent of value from its peak hit nearly two years ago.

Incorporated in 2003, Rail Vikas Nigam is a Ministry of Railways’ entity, engaged in the business of mobilization of financial resources, rail project development, enhancing golden quadrilateral and port connectivity by implementing rail projects and raising extra-budgetary resources for Indian Railway project execution. 
 

RVNL Q4 results
Rail Vikas Nigam reported a 58.9 per cent fall on a year-on-year (YoY) basis in the net profit at Rs 187 crore, while its revenue was up 4.2 per cent YoY to Rs 6,427 crore for the quarter ended on March 31, 2026. It clocked a 38.4 per cent YoY fall in the net profit at Rs 436 crore with margins contracting sharply to 4 per cent for the reported period.
 

RVNL target price
Rail Vikas Nigam reported a weak Q4FY26 and while other income dropped 56 per cent. For FY26, revenue rose 2.5 per cent to Rs 20,400 crore, but profit declined 47 per cent to Rs 680 crore as other income fell 91 per cent to Rs 85 crore from Rs 1,000 crore. RVNL attributed margin pressure to non-recurring factors, including an onerous contract provision and JV reconciliation adjustments, said PL Capital.

Management has guided for FY27 revenue growth of 15-20 per cent and expects profitability to improve from the reported FY26 margin of 3.8 per cent. RVNL’s order book stood at Rs 99,300 crore, or 4.9 times FY26 revenue, with a 50:50 mix of nomination and competitive projects, PL Capital said.

“Reported FY26 order inflow was Rs 7,000 crore, though scope revisions lifted effective inflows to Rs 22,600 crore. PL Capital cut FY27E/FY28E EPS estimates by 15 per cent and 5 per cent, maintained ‘sell’, and lowered the target price to Rs 165 from Rs 183, while flagging margin recovery and annual inflows of about Rs 30,000  crore as key upside risks,” it added suggesting a 33 per cent fall.

Antique Stock Broking also has a ‘sell’ rating on the stock with a target price of Rs 204, suggesting a 17 per cent correction in the stock from today’s lows.