RVNL shares rose 171% in a year; can they cross record high?

Shares of state-run Rail Vikas Nigam Ltd (RVNL) have risen 171% in a year, delivering multibagger returns to its shareholders. In 2023, RVNL stock has surged a huge 144%. During the up move, the stock managed to hit a record high of Rs 199.35 on September 12, 2023.  However, the RVNL stock has largely been in a downtrend since then. It ended 1.35% lower  at Rs 164.70 on Monday against the previous close of Rs 166.95 on BSE. In the current session, the stock rose over 2% to Rs 171. Total 18.92 lakh shares of RVNL changed hands amounting to a turnover of Rs 31.89 crore. Market cap of RVNL rose to Rs  34,913 crore on BSE. RVNL shares have a one-year beta of 1.4, indicating very high volatility during the period.       

In terms of technicals, the relative strength index (RSI) of RVNL stands at 56.2, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.    

Here’s a look at what analysts said about the outlook of the RVNL stock.   

Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has a buy call with a target price of Rs 182-198. Stop loss can be fixed at Rs 158.   

“RVNL formed a higher top-higher bottom formation on the daily chart. The stock is outperforming key benchmark indices. The momentum indicator viz. RSI has given an Inverse Head and Shoulder breakout, which suggests that the momentum on the upside is likely to continue. One can buy the stock at the prevailing level, with a stop loss of Rs 158, for targets of Rs 182-198 levels in the next couple of weeks,” said Vasudeo.  

Abhijeet from Tips2trades said, "RVNL stock price is bullish with strong support at Rs 156 on the Daily charts. A daily close above Rs 164  could lead to target of Rs 180 in the near term."  

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said,"The stock has been in consolidation for quite some time near the important 50EMA level of Rs 156 and currently with some spurt witnessed, one can anticipate for further rise with initial target of Rs 176 visible and further strength can carry the stock to Rs 200 zone which was the previous peak attained. The near-term support would be maintained near Rs 152 levels and one can expect for upward movement in the coming days."  

Mandar Bhojane, Equity Research Analyst, Choice Broking said, “RVNL is currently trading at the Rs 160 levels. On the weekly chart, the price is consistently forming new higher highs and higher lows, indicative of bullish momentum. Buying on dips is recommended around Rs 155 and Rs 150 levels, with support identified near the Rs 142.5 level. If the price successfully closes above the Rs 170 level, it is anticipated to garner further momentum on the bullish side, with a short-term target set at Rs 200 and Rs 230.  

Furthermore, the stock has crossed above its 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMA) and closed above them, which is often considered a bullish sign. It is also trading above other key moving averages, further reinforcing the bullish sentiment.  The Relative Strength Index (RSI) is presently at 52 and is on an upward trajectory, indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) is displaying a positive crossover. This combination of technical factors suggests that RVNL may have the potential to reach a target price of Rs 200 in the near term.”  

The firm reported a 3.4% rise in profit at Rs 394.3 crore in Q2 against Rs 381.2 crore in the year-ago period. Net profit rose 15% sequentially from Rs 343 crore.  Revenue climbed marginally to Rs 4,914.3 crore in Q2 against Rs 4,908.9 crore in the preceding year. Income from other operations rose 33% year-on-year to Rs 296 crore.  Earnings before interest, taxes, depreciation, and amortisation or EBITDA fell 5.6% to Rs 298.3 crore in the September 2023 quarter against Rs 315.9 crore in the September quarter of the previous fiscal.     

About the company          

 

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.     

 

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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