RVNL shares climb 3% after bagging Rs 808 crore order; what's next: Rs 110 or Rs 145?

Shares of Rail Vikas Nigam Ltd (RVNL) rose 2.66 per cent today to trade at Rs 121.80 against a previous close of Rs 118.65. The upward move in the share price came after the company received a letter of award (LOA) from the National Highways Authority of India (NHAI) worth Rs 808 crore. The LOA is for "rehabilitation and upgradation from 4 to 8 laning of Chandikhole – Paradip Section of NH-53 (Old NH – 5A) from Km. 60.000 to Km. 76.646 (Package-4) in Odisha on HAM mode – 2nd Call," RVNL stated. And, the project cost is Rs 808.48 crore and has to be completed in two years, it added.

The stock has given multibagger returns in the past one year, rallying more than 291 per cent. It has gained around 75 per cent in 2023 so far. The company's turnover came at Rs 8.14 crore today, commanding a market capitalisation (m-cap) of Rs 24,968.12 crore.

Support on the counter could be seen Rs 120, followed by Rs 118, Rs 115 and Rs 110 levels, analysts said. For RVNL, resistance may be witnessed around its lifetime high, near Rs 145, in the near term.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "RVNL has seen a magnificent move in the current financial year, wherein it soared to its lifetime high of Rs 144.50. After such a stellar move, the stock underwent some correction/profit booking. However, the overall structure construes a strong setup as the stock seems to be forming a base before the next leg of rally. As far as levels are concerned, Rs 115-110 is to be considered a sacrosanct support zone, while on the higher end, the immediate resistance is placed near the lifetime high zone of Rs 144-145."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has been consolidating for quite some time with strong support maintained near Rs 120 zone. An upside move would need a decisive breach above Rs 127 to confirm a breakout, anticipating for a next target of Rs 135 and thereafter Rs 144."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The daily charts are hinting towards an upside till Rs 132. Support would be expected near Rs 118."

AR Ramachandran from Tips2trades said, "RVNL stock price has strong resistance at Rs 129. A daily close below support of Rs 118 could lead to 106 in the near term."

Market expert Ravi Singh said, The stock is strongly bullish. It is likely to climb further towards Rs 135."

The counter's 14-day relative strength index (RSI) came at 43.17. 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 19.51 against a price-to-book (P/B) value of 4.02. The scrip has a one-year beta of 0.69, indicating low volatility.

Meanwhile, Indian equity benchmarks trade higher in Friday's deals, led by gains in technology, metals, banks, financials and consumer stocks.

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