RVNL shares resume uptrend as multibagger rail PSU stock jumps 13% in 2 days

Shares of Rail Vikas Nigam Ltd (RVNL) extended their gains for the second consecutive session in Tuesday's trade. The stock rose 3.30 per cent to hit a day high of Rs 626.65. At this price, it has gained 13.38 per cent in two trading days.

The rail PSU recently bagged an order worth Rs 739.07 crore from HPSEBL. "RVNL emerges as the lowest bidder (L1) for development of Distribution Infrastructure at Central Zone of Himachal Pradesh under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme [Loss Reduction Works] Tender No. [CE(MM)/RDSS-(P-1.1)/Central Zone] declared by HPSEBL," it stated.

RVNL has been securing new orders and signing meaningful pacts lately.

"The structural story remains intact. RVNL got an order yesterday. The company continues to swell its order book. And, this trend will persist as margins have improved," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Business Today TV.

On technical setup, support on the counter will be at Rs 570, followed by Rs 550 level.

"The stock has witnessed a short period of correction after a decent spurt. One can anticipate a further rise in the coming days. With the overall chart looking good, traders can enter at current levels, keeping the stop loss of Rs 550 and expecting a target of Rs 644 level," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"The stock has potential to hit an upside target of Rs 630. Keep stop loss placed at Rs 570 for this trade," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

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, projects and contract management.

As of June 2024, the government held a 72.84 per cent stake in the rail PSU.