RVNL shares snap two-day fall, climb 4% today; time to buy, sell or hold?

Shares of Rail Vikas Nigam Ltd resumed their upward move on Friday, halting their two-day fall. The stock today settled 4.33 per cent higher at Rs 107.64 over its previous close of Rs 103.17. The scrip touched its 52-week high of Rs 114.62 a couple of sessions earlier. At today's closing price of Rs 107.64, the counter has surged 271.17 per cent from its 52-week low of Rs 29, a level seen on June 21, 2022. The multibagger counter has gained 219.41 per cent in the past one year.

Recently, RVNL was awarded 'Navratna' status by the Finance Ministry. With this, the central public sector enterprise (CPSE) became the 13th 'Navratna' among CPSEs.

Technical analysts largely remained mixed on the counter as one of them suggested booking profits at current levels and another analyst didn't advise fresh buying. On the other hand, a couple of analysts also hinted that more upside could be possible.

"The stock has indicated resistance near the Rs 112-114 levels and the near-term support is visible near Rs 98 zone. The stock has witnessed a decent rally after the channel breakout was indicated and once the stock stabilises near Rs 98, the next round of momentum can be expected for a further target of around Rs 140," said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher.

"RVNL looks bearish and overbought on the daily charts with strong resistance at Rs 115. Investors should book profits at current levels as a close below the support of Rs 100 could lead to 78 in the near term," said AR Ramachandran from Tips2trades.

"The breakthrough above Rs 77 looks fantastic. The next target is Rs 188 in the following six months. Maintain stop loss at Rs 75," said Ravi Singhal, CEO at GCL Broking.

"At the current juncture, fresh buying is not advised at all. In case RVNL corrects to Rs 81 level, then only fresh longs are advisable. As of now wait and watch," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

RVNL traded higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 86.26. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 16.61. It has a price-to-book (P/B) value of 3.49.

Yet, RVNL has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 60.95 per cent. The scrip has a one-year beta of 0.90, indicating low volatility.

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.

Meanwhile, Indian equity benchmarks settled on a higher note today, extending their gains for the seventh straight session. The domestic indices surged led by gains in banks, technology, pharma, automobile, metal, consumer goods and energy stocks.

Also Read: UltraTech Cement Q4 results: Normalised profit up 13% at Rs 1,666 crore; Rs 38 dividend announced