Multibagger stock: RVNL shares jump 18% to hit fresh one-year high today; here's why
RVNL share price: In an exchange filing, RVNL said its annual general meeting (AGM) would be held on September 27, 2023. The company has received letter of acceptance (LOA) from Madhya Gujarat Vij Company Ltd (MGVCL) a couple of days back. The project cost is Rs 322.08 crore and the tenure is 31 months.
- Sep 4, 2023,
- Updated Sep 4, 2023 2:36 PM IST
Shares of Rail Vikas Nigam Ltd (RVNL) rose sharply in Monday's trade to hit their fresh 52-week high level. The stock surged 18.23 per cent to hit Rs 163.45 against its previous close of Rs 138.25. The multibagger stock has gained around 127 per cent in 2023 so far and 372 per cent in the past one year. On BSE, 107.30 lakh shares changed hands today. This was way above than the two-week average volume of 22.20 lakh shares. Turnover on the counter came at Rs 165.64 crore, commanding a market capitalisation (m-cap) of Rs 31,984.21 crore.
In an exchange filing, RVNL said its annual general meeting (AGM) would be held on September 27, 2023. The company has received letter of acceptance (LOA) from Madhya Gujarat Vij Company Ltd (MGVCL) a couple of days back. The project cost is Rs 322.08 crore and the tenure is 31 months.
"Going by the order book, we are going to see very strong sales as well as profit. The railway capex has hit Rs 2,40,000 crore, which is almost nine times compared to the 2014 railway budget. That's why a lot of re-rating is witnessed in the railway stocks. On technical setup, the stock has been garnering heavy volume activity over the last couple of weeks," Ashish Chaturmohta, Executive Director and Fund manager at JM Financial, told BT TV.
Chaturmohta suggested a target price of Rs 175 for RVNL.
On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 84.92. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 21.86 against a price-to-book (P/B) value of 4.68.
The scrip has an analyst target price of Rs 130, Trendlyne data showed, suggesting a potential downside of 17 per cent. It has a one-year beta of 0.96, indicating average volatility on the counter.
"The stock has been in a consolidation phase for quite some time near the Rs 120-125 zone and has given a strong spurt in the last two sessions with huge volumes. The near term target is visible near the Rs 166-168 zone. Also, a further upside around Rs 180-182 levels could be witnessed. The near term support from here on would be Rs 155," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.
"RVNL has seen a magnificent move in the current financial year and has clocked new lifetime highs. The stock took a pause to consolidate near its 21-DEMA and in the last couple of trading sessions, has regained robust traction to continue its northwards journey. Rs 142-139 is expected to act as a strong support zone, wherein it looks poised to continue its upward journey in uncharted territory in the comparable period. It is advisable to wait for some cool-off to freshly accumulate the counter. At the same time, those holding the stock could place trailing stop loss near the mentioned support zone from a short-term perspective," said Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One.
"The stock has given a strong breakout above Rs 144 level. It is now ready for a target of Rs 222 in the coming quarters. Keep strict stop loss on a closing basis at Rs 127," said Vaibhav Kaushik, Research Analyst, GCL Broking.
"Railway stocks are in the upward trend after the Ministry of Railways sought Cabinet approval for a Rs 5.25 lakh crore investment program during 2024-2031. On technical setup, RVNL is showing strength on daily and weekly charts. The momentum indicators are suggesting a strong move ahead for a target of Rs 180 in the near term," market expert Ravi Singh.
"RVNL stock price looks bullish but overbought on the daily charts with next resistance at Rs 167.70. A daily close below support of Rs 144.7 could lead to Rs 130.5 in the near term," said AR Ramachandran from Tips2trades.
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.
(Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.)
Also read: Hot stocks on September 4, 2023: YES Bank, Tata Steel, Jio Financial, RVNL and more
Shares of Rail Vikas Nigam Ltd (RVNL) rose sharply in Monday's trade to hit their fresh 52-week high level. The stock surged 18.23 per cent to hit Rs 163.45 against its previous close of Rs 138.25. The multibagger stock has gained around 127 per cent in 2023 so far and 372 per cent in the past one year. On BSE, 107.30 lakh shares changed hands today. This was way above than the two-week average volume of 22.20 lakh shares. Turnover on the counter came at Rs 165.64 crore, commanding a market capitalisation (m-cap) of Rs 31,984.21 crore.
In an exchange filing, RVNL said its annual general meeting (AGM) would be held on September 27, 2023. The company has received letter of acceptance (LOA) from Madhya Gujarat Vij Company Ltd (MGVCL) a couple of days back. The project cost is Rs 322.08 crore and the tenure is 31 months.
"Going by the order book, we are going to see very strong sales as well as profit. The railway capex has hit Rs 2,40,000 crore, which is almost nine times compared to the 2014 railway budget. That's why a lot of re-rating is witnessed in the railway stocks. On technical setup, the stock has been garnering heavy volume activity over the last couple of weeks," Ashish Chaturmohta, Executive Director and Fund manager at JM Financial, told BT TV.
Chaturmohta suggested a target price of Rs 175 for RVNL.
On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 84.92. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 21.86 against a price-to-book (P/B) value of 4.68.
The scrip has an analyst target price of Rs 130, Trendlyne data showed, suggesting a potential downside of 17 per cent. It has a one-year beta of 0.96, indicating average volatility on the counter.
"The stock has been in a consolidation phase for quite some time near the Rs 120-125 zone and has given a strong spurt in the last two sessions with huge volumes. The near term target is visible near the Rs 166-168 zone. Also, a further upside around Rs 180-182 levels could be witnessed. The near term support from here on would be Rs 155," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.
"RVNL has seen a magnificent move in the current financial year and has clocked new lifetime highs. The stock took a pause to consolidate near its 21-DEMA and in the last couple of trading sessions, has regained robust traction to continue its northwards journey. Rs 142-139 is expected to act as a strong support zone, wherein it looks poised to continue its upward journey in uncharted territory in the comparable period. It is advisable to wait for some cool-off to freshly accumulate the counter. At the same time, those holding the stock could place trailing stop loss near the mentioned support zone from a short-term perspective," said Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One.
"The stock has given a strong breakout above Rs 144 level. It is now ready for a target of Rs 222 in the coming quarters. Keep strict stop loss on a closing basis at Rs 127," said Vaibhav Kaushik, Research Analyst, GCL Broking.
"Railway stocks are in the upward trend after the Ministry of Railways sought Cabinet approval for a Rs 5.25 lakh crore investment program during 2024-2031. On technical setup, RVNL is showing strength on daily and weekly charts. The momentum indicators are suggesting a strong move ahead for a target of Rs 180 in the near term," market expert Ravi Singh.
"RVNL stock price looks bullish but overbought on the daily charts with next resistance at Rs 167.70. A daily close below support of Rs 144.7 could lead to Rs 130.5 in the near term," said AR Ramachandran from Tips2trades.
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.
(Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.)
Also read: Hot stocks on September 4, 2023: YES Bank, Tata Steel, Jio Financial, RVNL and more