RVNL shares up 36% year-to-date; is this multibagger rail PSU buy-worthy at this point? Analysts weigh in

Shares of Rail Vikas Nigam Ltd (RVNL) were trading 1.57 per cent higher at Rs 248.35 in Friday's trade. At this price, the stock has gained 36.34 per cent in 2024 so far. That said, it has given multibagger returns in the past one year by rallying 278.22 per cent.

The rail PSU has recently emerged as the lowest bidder for a contract with South Eastern Railway, valued at Rs 167.28 crore. Prior to this, RVNL has secured eight order wins until now in March.

Analysts largely remained positive on the counter. Although, one of them pointed out a mild bearish trend in the near term.

"We can once see an outperformance in railway stocks. For RVNL shares, one can expect upside targets of Rs 280-300 levels in the near term. Keep stop loss placed at Rs 220," Ratnesh Goyal, Head of Technical Analysis at Arihant Capital, told Business Today TV.

"Traders may see Rs 260 level in the near term. Maintain stop loss at Rs 242," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"RVNL looks slightly bearish on daily charts with strong resistance at Rs 258. A daily close below support of Rs 213 could lead to a downward target of Rs 185 in the near term," said AR Ramachandran from Tips2trades.

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.