Multibagger railway stock rises 34 times from IPO listing price, here are fresh price targets

Shares of Rail Vikas Nigam Ltd (RVNL) have delivered 34 times returns in just over five years since their market debut. The multibagger stock, which listed at Rs 19 in April 2019, hit a record high of Rs 645 on Friday, risen 3,400% during the period. The stock, which is currently in a bull run, has zoomed 247% this year.

Long-term and short-term investors are most likely bullish on RVNL shares as the stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. However, analysts have termed the short-term rally on the counter as a pre budget one and hold mixed views on the prospects of the railway stock.

Kushal Gandhi, Technical Analyst, StoxBox said, "RVNL has experienced a robust bullish breakout from a narrow range with significant volumes, leading to a nearly 50% surge in the last six trading sessions. The stock now trades approximately 37% above the mean, indicating a possibility of profit taking. However, the last two trading sessions have shown signs of indecision at the top, suggesting that it might be best to refrain from initiating new long positions in the stock."

Rahul Ghose, CEO of Hedged.In said, "RVNL has the potential to touch the Rs 700 mark over the next few months. Railway as a pack has been doing very well and the same is expected to continue assuming we don't see any surprises in the Budget. For the immediate short term, it might be prudent to also simultaneously keep a track on the Index as it seems overvalued at the current juncture at Rs 24,600."

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a strong run up in the last week from Rs 420 levels and has made a high of Rs 645 levels witnessing some resistance and currently finding some consolidation. The stock has maintained the strong bias intact and with near-term support of Rs 530 zone, one can anticipate for further rise once a breach above Rs 645 zone is confirmed, expecting for next target of Rs 680 levels in the coming days. Only a decisive breach below Rs 507 zone shall weaken the trend and negate our view."

Riyank Arora, Technical Analyst at Mehta Equities said, "Over the past week, the stock has surged nearly 52% in a robust bull run. According to technical charts, significant support is now at approximately Rs 534.00, with immediate support around Rs 590.00 from a trader's perspective. We advise traders to maintain strict stop-loss levels and hold their positions, aiming for an upside target of Rs 675.00 - Rs 700.00 as long as the bullish momentum continues."

Amid the current leg of rally, RVNL is overbought on charts with a relative strength index (RSI) RSI of 85.5. It indicates there are more buyers than sellers for the stock in the current session.

RVNL shares hit a record high of Rs 645 in early deals today, rising 2.38% on BSE. Sentiment around the stock has been positive ahead of the upcoming Union Budget on July 23.

The rally in the railway stock comes amid the Ministry of Railways plans to make another 10,000 non-AC coaches in 2024-25 and 2025-26 to meet the increasing demand and enhance passenger comfort for the common man on its network.

According to reports, the Ministry plans to roll out 4,485 non-AC coaches in the ongoing financial year (2024-25) and another 5,444 of these in 2025-26.

On Friday, total 47.69 lakh shares of RVNL changed hands amounting to the highest turnover of Rs 301.14 crore. Market cap of RVNL climbed to Rs 1.32 lakh crore on BSE. RVNL shares have a one-year beta of 1.4, indicating high volatility during the period.      

The stock fell to a 52-week low of Rs 117.35 on July 13, 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, project and contract management.