Shares of Rail Vikas Nigam Ltd (RVNL) have rallied 86% in the last six months, breaking out from the consolidation zone of nearly five years. RVNL stock rose from Rs 34.15 on September 19, 2022 to Rs 64.58 today. However, the public sector stock is still trading 23.25% lower to the 52-week high of Rs 84.15 hit on November 29, 2022.
The 30-stock Sensex has fallen 2.26% during the same period. The parent index BSE 500 has slipped 6.05% during the period. In the current trading session, the stock touched an intraday high of Rs64.58, rising 4.28% on BSE. The stock has gained after four days of consecutive fall. Total 5.44 lakh shares of the firm changed hands amounting to a turnover of Rs 3.46 crore. Market cap of the firm rose to Rs 13,137 crore on BSE. RVNL shares have lost 7.85% this year and risen 82 per cent in a year. In a month, the stock has lost 8.12%. The stock hit a 52-week low of Rs 29 on February 24, 2022.
In terms of technicals, the relative strength index (RSI) of RVNL stands at 41, signaling it’s neither trading in the overbought zone nor in the oversold zone. RVNL stock has a one-year beta of 0.8, indicating low volatility during the period. Rail Vikas Nigam stock is trading higher than the 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
In the December quarter of this fiscal, net profit climbed 30.51% to Rs 382.42 crore against Rs 293.01 crore during the previous quarter ended December 2021. Sales stood flat at Rs 5012.09 crore in Q3 against Rs 5049.24 crore during the quarter ended December 2021.
Here’s a look at what analysts said about the prospects of the RVNL stock.
Abhijeet from Tips2trade said, “Rail Vikas Nigam stock looks weak on the Daily charts with strong resistance at Rs 67.5. A daily close below support of Rs 60 could lead to lower target of 56 in the near term.”
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “The stock after hitting the peak zone of Rs 81.75 has witnessed a decent correction to touch the low of Rs 56 and once again with a lower formation near Rs 67 zone on the daily chart has slipped to some extent. The stock needs to cross decisively the Rs 67.50 level, which is also the significant 50EMA zone for the trend to improve and expect for further rise. The downside major support would be 56 level below which the trend and bias would turn negative.
It’s important to cross the Rs 67.50 zone to establish some conviction for further improvement of the trend and expect targets of Rs 73 and Rs 82 levels for the short term time frame. So technically, only after a decisive breakout above Rs 82 zone can confirm the next upside projection target for Rs 100 levels with momentum picking up.”
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, project and contract management.
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