RVNL shares surge 10% to hit fresh all-time high; check potential target price & other details

Shares of Rail Vikas Nigam Ltd (RVNL) on Wednesday jumped 10.05 per cent to scale their all-time high level of Rs 245.95. The stock eventually settled with 7.70 per cent gains at Rs 240.70. The multibagger scrip has delivered 208 per cent return in a year. Today's up move in the share price came despite a sharp sell-off across domestic indices.

The company has recently incorporated subsidiary firm RVNL Infra South Africa. In addition, it has formed a joint venture with Jakson Green Pvt Ltd to explore an opportunity in solar power projects. In the JV, RVNL has a 49 per cent stake and Jakson has a 51 per cent share.

Prior to this, the rail PSU emerged as the lowest bidder a project valued at Rs 251.05 crore.

Analysts largely suggested that the stock is likely to continue its upward move. Support on the counter could be seen at Rs 220, followed by Rs 212 and Rs 210 levels.

Also read: RVNL shares in news today as firm forms JV for green energy projects

"The stock may move towards Rs 250-260 levels. Support on the counter could be seen at Rs 220," Ashish Chaturmohta, Executive Director and Fund manager at JM Financial, told Business Today TV.

"RVNL can carry on its upward 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," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"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," said DRS Finvest founder Ravi Singh.

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 that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

Also read | Stock recommendations by analysts for January 17, 2024: AB Capital, Cipla and UBL

Also read | Sensex, Nifty crash: HDFC Bank, China GDP miss, 3 other reasons behind market fall