RVNL shares hit 10% upper price band; check revised target price & other details

Rail Vikas Nigam Ltd (RVNL) shares zoomed 10 per cent to scale their upper circuit limit -- also one-year high level -- during Saturday's special trading session. The multibagger scrip has rallied 317.92 per cent in a year and 76.09 per cent in January so far.

The rail PSU has recently incorporated subsidiary firm RVNL Infra South Africa. It has also formed a joint venture with Jakson Green Pvt Ltd to explore an opportunity in solar power projects. In the JV, RVNL has a 49 per cent stake and Jakson has a 51 per cent share.

Prior to this, the state-run firm emerged as the lowest bidder a project valued at Rs 251.05 crore.

A majority of railway counters -- including RVNL -- have witnessed significant gains this month after it was reported that capex allocation for the sector in Budget could hit a record high. Budget 2024 will be presented on February 1.

Support on the counter could be seen in the Rs 320-300 zone, technical analysts said. On the higher side, a decisive close above Rs 325 is required for potential upside of up to Rs 340.

"Support will be at Rs 300 and resistance at Rs 325. A decisive close above Rs 325 level may trigger a further upside till Rs 340. That said, expected trading range will be between Rs 280 and Rs 350 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"RVNL stock price looks bullish and also overbought on daily charts with next resistance at Rs 341.6. A daily close below support of Rs 320 could lead to Rs 247 in the near term," said AR Ramachandran from Tips2trades.

"The stock looks strong on charts. Now, it has a revised near-term target price of Rs 340. Keep stop loss placed at Rs 310," said DRS Finvest founder Ravi Singh.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry to execute projects assigned to it. 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 were open today in a special but full-fledged trading session. And, January 22 (Monday) has been declared as a public holiday for stock markets by the Maharashtra government owing to the consecration of Ram temple in Ayodhya.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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