Rail Vikas Nigam shares extend gains, jump 15% to hit one-year high today
RVNL share price: Last month, RVNL emerged as the lowest bidder for manufacturing cum maintenance of Vande Bharat trains along with Russia's Transmashholding (TMH) as a joint venture partner. TMH's company Metrowagonmash is based in Russia's Mytishchi.
- Apr 24, 2023,
- Updated Apr 24, 2023 5:29 PM IST
Shares of Rail Vikas Nigam Ltd (RVNL) on Monday extended their gains for the third straight session amid heavy volumes. The stock surged 14.59 per cent to hit a day high -- also its 52-week high -- of Rs 88.84. The scrip eventually settled 13.25 per cent higher at Rs 87.80 over its previous close of Rs 77.53. A total of 1.08 crore shares changed hands today on BSE, which was more than seven times compared to the two-week average volume of Rs 14.42 shares. Turnover on the counter stood at Rs 90.64 crore, commanding a market capitalisation of Rs 18,306.48 crore.
Most railway counters were in focus today and saw a sharp upward move. On Sunday, it was reported that Indian Railways would begin the production of 120 advanced Vande Bharat Express trains by August 2023. This could be one probable reason for today's rise in some of the railway stocks.
"At least 120 advanced Vande Bharat trains will be manufactured at Marathwada Railway coach factory in Latur, and efforts are on to begin production by August," news agency PTI reported quoting Union minister Raosaheb Danve. The tendering process for coach manufacturing is in the final stages and the contract would be finalised soon, the report also mentioned.
Last month, RVNL emerged as the lowest bidder for manufacturing cum maintenance of Vande Bharat trains along with Russia's Transmashholding (TMH) as a joint venture partner. TMH's company Metrowagonmash is based in Russia's Mytishchi.
On the technical front, RVNL traded higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 80.40. 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 12.49. It has a price-to-book (P/B) value of 2.62. The scrip has climbed 28.08 per cent so far in 2023 and 151.94 per cent in the past one year.
"RVNL looks very bullish but also overbought on the daily charts with the next resistance at Rs 91. Investors should book profits at current levels and wait for a dip near support of Rs 68-73 to buy for better returns," said AR Ramachandran from Tips2trades.
That said, RVNL has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 52.14 per cent. The scrip has a one-year beta of 0.85, indicating low volatility.
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.
Meanwhile, Indian equity benchmarks rose sharply today in a fluctuating trade, led by gains in banks, financials, consumer and technology stocks.
Also read: IndusInd Bank Q4 results: Net profit jumps 46%; lender declares Rs 14 dividend
Also read: HDFC, IndusInd Bank, RIL, Infosys, Tata Steel: Banks among 9 Nifty stocks that saw FPI selloff in Q4
Shares of Rail Vikas Nigam Ltd (RVNL) on Monday extended their gains for the third straight session amid heavy volumes. The stock surged 14.59 per cent to hit a day high -- also its 52-week high -- of Rs 88.84. The scrip eventually settled 13.25 per cent higher at Rs 87.80 over its previous close of Rs 77.53. A total of 1.08 crore shares changed hands today on BSE, which was more than seven times compared to the two-week average volume of Rs 14.42 shares. Turnover on the counter stood at Rs 90.64 crore, commanding a market capitalisation of Rs 18,306.48 crore.
Most railway counters were in focus today and saw a sharp upward move. On Sunday, it was reported that Indian Railways would begin the production of 120 advanced Vande Bharat Express trains by August 2023. This could be one probable reason for today's rise in some of the railway stocks.
"At least 120 advanced Vande Bharat trains will be manufactured at Marathwada Railway coach factory in Latur, and efforts are on to begin production by August," news agency PTI reported quoting Union minister Raosaheb Danve. The tendering process for coach manufacturing is in the final stages and the contract would be finalised soon, the report also mentioned.
Last month, RVNL emerged as the lowest bidder for manufacturing cum maintenance of Vande Bharat trains along with Russia's Transmashholding (TMH) as a joint venture partner. TMH's company Metrowagonmash is based in Russia's Mytishchi.
On the technical front, RVNL traded higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 80.40. 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 12.49. It has a price-to-book (P/B) value of 2.62. The scrip has climbed 28.08 per cent so far in 2023 and 151.94 per cent in the past one year.
"RVNL looks very bullish but also overbought on the daily charts with the next resistance at Rs 91. Investors should book profits at current levels and wait for a dip near support of Rs 68-73 to buy for better returns," said AR Ramachandran from Tips2trades.
That said, RVNL has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 52.14 per cent. The scrip has a one-year beta of 0.85, indicating low volatility.
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.
Meanwhile, Indian equity benchmarks rose sharply today in a fluctuating trade, led by gains in banks, financials, consumer and technology stocks.
Also read: IndusInd Bank Q4 results: Net profit jumps 46%; lender declares Rs 14 dividend
Also read: HDFC, IndusInd Bank, RIL, Infosys, Tata Steel: Banks among 9 Nifty stocks that saw FPI selloff in Q4