RVNL shares settle 9% higher after hitting all-time peak; check target price & analyst views

Shares of Rail Vikas Nigam Ltd (RVNL) surged 13.49 per cent to scale their all-time high level during intraday deals on Monday. The stock eventually settled with 8.67 per cent gains at Rs 220.70. At this price, the multibagger scrip has zoomed 187.18 per cent in a year. On BSE, around 71.11 lakh shares changed hands today. The figure was higher than the two-week average volume of 21.26 lakh shares. Turnover on the counter stood at Rs 157.19 crore, commanding a market capitalisation (m-cap) of Rs 46,016.39 crore.

On technical setup, support on the counter could be seen in the Rs 210-200 zone. On the higher side, RVNL may climb up to Rs 282 in the near term. An analyst mentioned that traders should keep trailing profits at current levels.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "RVNL is in a secular up trend, hovering at its lifetime high zone. The counter recently surpassed the Rs 200 mark and continued its upward rally into uncharted territory. For now, it is advisable to keep trailing profits. Rs 200 is likely to act as a strong support zone in the comparable period."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has reached our targets of Rs 218-227 and with further strength indicated, it can carry on the up move. Next potential targets of Rs 254-282 levels may be achievable in the coming days. The near-term support would be Rs 212 zone and only a decisive breach below Rs 202 levels would weaken the trend."

DRS Finvest founder Ravi Singh said, "The stock is looking strong on charts and may see Rs 250 level in the near term. Keep a strict stop loss placed at Rs 210."

AR Ramachandran from Tips2trades said, "RVNL stock price looks s bullish and also overbought on the daily charts with next resistance at Rs 226. A daily close below support of Rs 203 could lead to Rs 177 in the near term."

A majority of railway counters witnessed sharp gains today after it was reported that Budget allocation for the sector could hit record high. Vishal Periwal, Sector Analyst (Infra) at IDBI Capital, said, "With Budget around the corner, railways stocks witnessed sharp gains today. It could be on anticipating a record allocation for the sector."

As of September 2023, promoters held 72.84 per cent stake in the company.

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.

(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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