Multibagger RVNL shares down 14% from 52-week high; time to buy, sell or hold?
RVNL share price: At today's high price of Rs 126.55, the scrip was down 13.71 per cent from its 52-week high of Rs 146.65, a level seen on July 24, 2023. That said, the multibagger stock has gained 314.23 per cent from its one-year low price of Rs 30.55, hit on August 23, 2022. The state-run company has recently scored multiple deal wins.
- Aug 1, 2023,
- Updated Aug 1, 2023 2:46 PM IST
Shares of Rail Vikas Nigam Ltd (RVNL) rose 1.97 per cent on Tuesday to hit a day high of Rs 126.55 against their previous close of Rs 124.10. At today's high price of Rs 126.55, the scrip was down 13.71 per cent from its 52-week high of Rs 146.65, a level seen on July 24, 2023. That said, the multibagger stock has gained 314.23 per cent from its one-year low price of Rs 30.55, hit on August 23, 2022. The state-run company has recently scored multiple deal wins and concluded an offer for sale (OFS).
On technical setup, the counter's 14-day relative strength index (RSI) came at 51.37. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 20.41 against a price-to-book (P/B) value of 4.20.
The scrip has an average target price of Rs 130, Trendlyne data showed, suggesting a potential upside of 4 per cent. It has a one-year beta of 0.78, indicating low volatility on the counter.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock after the decent spurt to touch the peak zone of Rs 146 has resisted and witnessed some profit booking to take support near the Rs 119-120 levels. Once again, the bias has started showing improvement and a reversal is indicated with once again the target expected at Rs 135-140 levels from here on with the RSI showing a buy signal with much upside potential. The support would be strong near Rs 119 zone."
AR Ramachandran from Tips2trades said, "RVNL stock price is slightly bullish with strong resistance at Rs 126 on the daily charts. A daily close below the support of Rs 119 could lead to a target of Rs 110 in the near term."
Manoj Dalmia, CEO of Proficient Equities, said, "RVNL has been effectively using its capital to generate profit. Investors can wait to accumulate considering current levels. Rs 110 can be a good level to accumulate. Additionally, any closing above Rs 148 can trigger ascending moves up to Rs 170."
Aditya Gaggar, Director of Progressive Shares, said, "The stock has regained its momentum. The share price was seen at a new high while RSI failed to move in tandem which resulted in a bearish divergence and the stock price corrected, which was coupled with the OFS news. The overall uptrend remained intact and the target of the pattern comes to around Rs 199."
Last month, the government had launched an OFS to sell a stake of up to 5.36 per cent in the state-owned firm. The floor price for the sale was set at Rs 119 per share.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.
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Shares of Rail Vikas Nigam Ltd (RVNL) rose 1.97 per cent on Tuesday to hit a day high of Rs 126.55 against their previous close of Rs 124.10. At today's high price of Rs 126.55, the scrip was down 13.71 per cent from its 52-week high of Rs 146.65, a level seen on July 24, 2023. That said, the multibagger stock has gained 314.23 per cent from its one-year low price of Rs 30.55, hit on August 23, 2022. The state-run company has recently scored multiple deal wins and concluded an offer for sale (OFS).
On technical setup, the counter's 14-day relative strength index (RSI) came at 51.37. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 20.41 against a price-to-book (P/B) value of 4.20.
The scrip has an average target price of Rs 130, Trendlyne data showed, suggesting a potential upside of 4 per cent. It has a one-year beta of 0.78, indicating low volatility on the counter.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock after the decent spurt to touch the peak zone of Rs 146 has resisted and witnessed some profit booking to take support near the Rs 119-120 levels. Once again, the bias has started showing improvement and a reversal is indicated with once again the target expected at Rs 135-140 levels from here on with the RSI showing a buy signal with much upside potential. The support would be strong near Rs 119 zone."
AR Ramachandran from Tips2trades said, "RVNL stock price is slightly bullish with strong resistance at Rs 126 on the daily charts. A daily close below the support of Rs 119 could lead to a target of Rs 110 in the near term."
Manoj Dalmia, CEO of Proficient Equities, said, "RVNL has been effectively using its capital to generate profit. Investors can wait to accumulate considering current levels. Rs 110 can be a good level to accumulate. Additionally, any closing above Rs 148 can trigger ascending moves up to Rs 170."
Aditya Gaggar, Director of Progressive Shares, said, "The stock has regained its momentum. The share price was seen at a new high while RSI failed to move in tandem which resulted in a bearish divergence and the stock price corrected, which was coupled with the OFS news. The overall uptrend remained intact and the target of the pattern comes to around Rs 199."
Last month, the government had launched an OFS to sell a stake of up to 5.36 per cent in the state-owned firm. The floor price for the sale was set at Rs 119 per share.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.
Also read: IRFC shares recover 87% from 52-week low; can they hit Rs 50 mark?
Also read: Hot stocks on August 1, 2023: Adani Green, Power Grid, Adani Energy Solutions, DLF and more