RVNL shares hit 5% lower circuit limit; mutlibagger PSU stock down 16% in 3 days

After a spectacular rally in the last few sessions, shares of Rail Vikas Nigam (RVNL) are witnessing some profit booking in the two sessions. The PSU stock, which has turned into a multibagger, hit lower circuit for second session in a row amid a severe selling pressure on Wednesday.

Shares of Rail Vikas Nigam have been amid the buzz in the last few sessions as the stock surged about 100 per cent to Rs 144.50 from Rs 68 in just 18-odd trading sessions. However, the Euphoria fizzled out soon as the stock dropped about 16 per cent in the last three sessions, including two straight sessions of lower circuits.

Shares of RVNL were locked in the seller's circuit of 5 per cent to Rs 121.90 on Wednesday as the stock dropped, while the stock had settled at Rs 128.30 on Tuesday, 5 per cent down. Company's total market capitalization was less than Rs 25,500 crore on Wednesday.

RVNL has surged about 400 per cent in less than 11 months from its 52-week low at Rs 29 in June 2022 to its 52-week high at Rs 144.50 on May 8. The stock has gained about 80 per cent in the year 2023 so far, while stock is up 65 per cent in the last one month.

Recently, the government of India had upgraded RVNL's status to ‘Navratna’ Central Public Sector Enterprises (CPSE) from a ‘Miniratna’ category, making it the 13th Navratna company among the CPSEs in India. RVNL is a wholly owned subsidiary under the Ministry of Railways.

RVNL has been in buzz recently on the back of multiple order wins, inflating its order book, thanks to the infrastructure push by the government. The company paid an interim dividend of Rs 1.77 in April 2023.

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, projects and contract management.

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