RVNL shares zoom 20% to hit fresh one-year high, settle above Rs 100 mark; here's why
RVNL share price: Most railway counters saw a sharp upward move during the last two sessions after it was reported that Indian Railways would start production of advanced Vande Bharat trains by August this year.
- Apr 25, 2023,
- Updated Apr 25, 2023 4:07 PM IST
Shares of Rail Vikas Nigam Ltd (RVNL) on Tuesday rose sharply to hit their fresh one-year high level, extending their gains for the fourth straight session. The stock surged 20 per cent to hit a day high -- also its 52-week high -- of Rs 105.36. The scrip eventually settled 19.35 per cent higher at Rs 104.79 over its previous close of Rs 87.80. Most railway counters saw a sharp upward move during the last two sessions after it was reported that Indian Railways would start production of advanced Vande Bharat trains by August this year.
"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 further said.
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. In addition, the miniratna PSU also emerged as the lowest bidder for – Mumbai Metro line 2B of MMRDA project worth Rs 378 crore.
This month, RVNL received a nod from North Western Railway for the provision of automatic block signalling on Madar-Sakhun Section (51.13 Kms) of the Jaipur division. The order size was Rs 63 crore.
Separately, RVNL has also incorporated a subsidiary company named Kinet Railway Solutions.
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 88.40. 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 14.14. It has a price-to-book (P/B) value of 2.97. The scrip has surged 53.70 per cent so far in 2023 and 203.19 per cent in the past one year.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock in the past two sessions has given a decent rally after the channel breakout was indicated and currently has almost achieved the next target level of Rs 110 where it can witness some resistance. The next upside target would be near Rs 140 and the near-term support zone would be Rs 98."
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, "The counter has given a massive breakout of the triangle formation with a strong volume on the daily chart. It faced trend-line resistance at around Rs 75, but in the last two trading sessions, the stock has broken these levels and moved towards a new all-time high."
That said, RVNL has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 60.11 per cent. The scrip has a one-year beta of 0.89, 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 settled in the green today amid volatile trade, led by gains in metals, state-owned lenders and energy stocks.
Also read: LIC shares: Insurance stock headed for fresh yearly low within a month? Here’s what lies ahead
Also read: ITC, Maruti Suzuki, NTPC, Bharti Airtel shares outdo Nifty in phases of FPI outflows!
Shares of Rail Vikas Nigam Ltd (RVNL) on Tuesday rose sharply to hit their fresh one-year high level, extending their gains for the fourth straight session. The stock surged 20 per cent to hit a day high -- also its 52-week high -- of Rs 105.36. The scrip eventually settled 19.35 per cent higher at Rs 104.79 over its previous close of Rs 87.80. Most railway counters saw a sharp upward move during the last two sessions after it was reported that Indian Railways would start production of advanced Vande Bharat trains by August this year.
"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 further said.
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. In addition, the miniratna PSU also emerged as the lowest bidder for – Mumbai Metro line 2B of MMRDA project worth Rs 378 crore.
This month, RVNL received a nod from North Western Railway for the provision of automatic block signalling on Madar-Sakhun Section (51.13 Kms) of the Jaipur division. The order size was Rs 63 crore.
Separately, RVNL has also incorporated a subsidiary company named Kinet Railway Solutions.
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 88.40. 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 14.14. It has a price-to-book (P/B) value of 2.97. The scrip has surged 53.70 per cent so far in 2023 and 203.19 per cent in the past one year.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock in the past two sessions has given a decent rally after the channel breakout was indicated and currently has almost achieved the next target level of Rs 110 where it can witness some resistance. The next upside target would be near Rs 140 and the near-term support zone would be Rs 98."
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, "The counter has given a massive breakout of the triangle formation with a strong volume on the daily chart. It faced trend-line resistance at around Rs 75, but in the last two trading sessions, the stock has broken these levels and moved towards a new all-time high."
That said, RVNL has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 60.11 per cent. The scrip has a one-year beta of 0.89, 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 settled in the green today amid volatile trade, led by gains in metals, state-owned lenders and energy stocks.
Also read: LIC shares: Insurance stock headed for fresh yearly low within a month? Here’s what lies ahead
Also read: ITC, Maruti Suzuki, NTPC, Bharti Airtel shares outdo Nifty in phases of FPI outflows!