Rail Vikas Nigam Ltd (RVNL): New Order Received:-
Discuss some important companies and some important updates related to them The name of the first company is RVNL i.e. Rail Vikas Nigam. Disclaimer that all the news and updates related to the companies that we will cover are only for educational purposes and for learning. So do not consider this as any kind of investment advice. You can also do your own research and analysis. About RBNL i.e. Rail Vikas Nigam Limited. Now there is a big reason behind this. The reason is that we are getting to hear a news related to the company and we are getting to see the news related to the business of the company. Now do you have the exact news? So look here you will see the mention that RVNL share in focus after securing Rs 143 crore order from South Central Railway. That is, we can say that RBNL has received an order from South Central Railway which is worth Rs 143 crore. If we compare this number with the orders that the company used to get earlier, we are seeing a smaller number.
Revenue Growth:-
But ultimately if the news of the order is related to business then it is obvious that it can be considered positive. Now look friends, what has happened in RBNL in the last few times is that we have witnessed a significant decline. The fall from 52 week high will almost be around 40%. Now what is the reason behind this decline? The reason is that currently due to the news in the company, a good rise was seen due to the gain of orders. Valuations also appeared to be becoming quite expansive. You could see the company trading at a PE of 90.
And any valuation becomes expensive when the earnings of that company do not deliver at the level that can justify that valuation and that is what we have seen in this company. About the last 1 year, then the company’s revenue growth has been seen in the negative and the profit growth has also been seen in the negative and the company was also seen trading at its all-time highest valuation. So for this reason, it can be said that it was very difficult to justify that valuation. No matter how much company related news we get to see. So due to this we saw significant corrections in valuations and a drop in earnings as well. And because of this decline, we can say that the inability of the company’s earnings to grow is the main reason for this decline. Ok? So you can keep this thing in mind and you can also do a good research on this thing.
Infosys: All Eyes on Upcoming Q1 Results:-
The next company is Infosys i.e. Infosysed. At number one is TCS i.e. Tata Consultancy Services. So when we are about to see the results of the market leader, often many people also pay attention to the other companies in that sector because it is decided on the basis of the leader as to how we can see the numbers of the other companies in that sector. So, you all know that we are going to see the leader’s number on 10th July and the result that we will get to see on 10th July, on that day, not only will the investors of TCS watch the result carefully but along with that, the investors of Infosys, SLT, V Pro Tech Mahindra, investors of all these companies will also watch its result. Now look friends, here you can say that Motilal Oswal’s expectations have been released from the results of the IT sector. Here IT sector has been mentioned and not the name of any IT company. Ok? So their expectation is that this time in the revenue report of the IT sector in Q1, we will see a growth of 6% on year on year basis. It ‘s here. Ok? And EBITDA and profit after tax will also see growth of around 6%. In this, EBITDA will grow by around 7% on year on year basis and profit after tax will grow by 6.5%. So let’s see, first of all we will get to see the numbers of TS. It remains to be seen whether we get to see the results of TS as per the expectations or not and if the results are good, then the expectation will increase that we may also get to see good results of companies like Infosys.
Quarterly Results:-
Now if about its quarterly results, in the last quarter, for the first time after a long time or we can say after a long time or after many years, we saw a dip on q & q basis in the company’s revenue. And this was not just seen in Infosys. This was also seen in other tech companies. And we hope that in the numbers that we will see coming out on 23rd July, we will see the company’s revenue growing both on Q1 & Q basis as well as on year on year basis and will see it growing by at least 6%. Because the growth rate of the last quarter and the growth rate of the quarter before that was looking good. If we compare on the basis of 6%, but if we get a number above 6% then somewhere we will get to see that number better than the expectations. So you can keep this thing in mind. All these things are just for the sake of learning, do not consider this as any kind of recommendation. So let’s talk about the next company.
CDSL (Central Depository Services): Valuations & Volumes:-
So the name of the next company is CDSL i.e. Central Depository Services India.About CDSL, then how much is it currently above its 52 week high? You can see this company down by approximately 10%. Now one thing to note is that a decline in CDSL was seen in the recent times and some recovery was also seen. Now the reason for the decline was the weak earnings of the company which we saw in Q3 and Q4. But friends, the reason for the recovery was that if you compare the volumes in the data of NSE and BSE of the months of April and May with the volume of the second half of the previous financial year, then this time we saw the volume of BSE to be more than 50%, if we compare the complete data of the second half in the months of April and May, and you were also seeing a jump of 5% in the volumes of NSE. So, if we look at the volumes in terms of 6 months’ data, the volumes in the month of June were not seen like those in April and May. There was a decline in volumes because the market did not perform well in the month of June. So the point to note here is that the higher the volumes, the more opportunity the companies connected to the capital market will get to earn.
So, it is expected that this time the Q1 results of CDSL that we will see may be flat on year on year basis and may also be flat on Q1 Q basis. Because in the last quarter it had directly reported the degrowth on both Q1Q basis as well as year on year basis. But this time if the numbers are flat then somewhere the numbers will be considered better in comparison to the last time. So due to this, the opinion of many people regarding the valuations of this company saw a slight change and we also saw a slight recovery in the valuations and currently the EPS and valuation of the company are both around the same range. So here the next earnings i.e. that of Q1 will matter a lot for the company’s
valuations. So keep this in mind also that q1 is very important to justify the valuations.After all these things, the share holding pattern of Q1 has not been updated yet, but when it will be updated, it will be very important to see it because in the last quarter we saw that FI and DI had aggressively diluted their stakes in this company and the same FI had aggressively increased its stake in Q3 but aggressively decreased it in Q4 and DIs have been decreasing for two back to back quarters and are reducing their stakes, so this thing will have to be seen in the share holding pattern of quarter one, whether FI is continuing its stakes which it had diluted in the last quarter or are we seeing some recovery there. So keep this thing in mind also. If you are an investor in this company, all the things mentioned here are only for learning purposes, so do not consider this as any kind of investment advice or recommendation.
Roto Pumps Ltd: Bonus Issue Announced:-
The next company whose name is Rot Pumps LED. The company had issued bonus in the ratio of 2:1. In which the company had decided to give two equity shares in exchange of one share as a bonus. Now this company has issued its record date etc. About the record date, we find it to be July 11. This means that all those who will be the shareholders of the company before July will be eligible for bonus in the company. But yes, all these things are just news. Do not consider this as any kind of recommendation. There is news for them. Who are the shareholders of the company.