Rs 30 to Rs 392: This stock turned into a multibagger in three years, fell 31% in a year

Shares of Rail Vikas Nigam Limited (RVNL) have delivered multibagger returns in three years. The railway stock, which closed at Rs 30.6 on July 7, 2022 rose to a high of Rs 392.40 in the current session, clocking 1150% returns in three three years. However, The multibagger railway stock has seen correction in the short term. RVNL stock slipped 31% in a year and fell 10% in a month. In period up to two years, the stock rose 218%. 

In the current session, RVNL stock was trading on a flat note at Rs 387.50. Market cap of the firm stood at Rs 80,794 crore.

The multibagger railway stock hit a record high of Rs 647 on July 15, 2024. It has slipped 40.16% from that peak. 

Om Mehra, Technical Research Analyst, SAMCO Securities said, "RVNL is currently navigating a crucial juncture, having cooled off after a strong upward stretch in recent months. The stock price is currently caught between two critical moving averages — it continues to hold above the 55-day SMA but has been unable to convincingly reclaim the downward-sloping 200-day SMA, which now acts as a key resistance near the Rs 405-Rs 410 zone. 

A further dip toward the Rs 375-Rs 380 zone would enhance the risk-reward profile for fresh entries. 

On the other hand, a sustained close above Rs 410 would indicate strength returning, potentially triggering the next leg of the uptrend toward Rs 430, followed by Rs 450."

Ajit Mishra – SVP, Research, Religare Broking said, "RVNL has been trading with a corrective bias for the past year and is currently hovering around the support zone formed by the moving average ribbon, comprising the 20, 100, and 200 DEMA. The current indications are mixed, and a decisive breakout from the Rs 380–420 range could trigger the next leg of the move. Participants are advised to avoid aggressive positioning at the current levels and wait for a clearer signal."

Hardik Matalia Derivative Analyst Choice Broking said, "RVNL is currently trading around Rs 389 and remains in an overall downtrend, reflecting persistent weakness in recent months. A decisive breach below the Rs 380 mark could open the door for renewed selling pressure, potentially dragging the stock toward its previous support zone in the Rs 320–Rs 300 range. Short-term traders should be cautious and may look for fresh shorting opportunities if the support level is broken convincingly. Conversely, any meaningful reversal would require a breakout above Rs 450, which could signal a shift in sentiment and open the path for further upside.

Long-term investors, however, can consider initiating partial accumulation at current levels and continue adding on dips. While the overall trend remains weak, a staggered investment approach is advisable for those with a long-term horizon." 

The firm reported a 4% fall in net profit year-on-year to Rs 459 crore for the fourth quarter ending March 31, 2025. In the same period last year, the company’s net profit stood at Rs 478.4 crore.

Revenue from operations also slipped 4.3% to Rs 6,426.9 crore in Q4 compared to Rs 6,714 crore in the corresponding quarter of the prior fiscal year. 

RVNL acts as the construction branch of the Ministry of Railways, dedicated to executing high-priority transportation infrastructure projects throughout India. The PSU has been instrumental in accelerating railway modernization and capacity enhancement efforts.