Shares of Rail Vikas Nigam Ltd (RVNL) rose over 4 per cent in Wednesday’s trade. At today’s high price, the stock has slipped 6.55 per cent from its one-year high of Rs 199.35, a level seen on September 12 last year. Despite the mentioned fall, the multibagger scrip has 231.79 per cent from its 52-week low of Rs 56.15, hit on March 1, 2023.
The KRDCL-RVNL joint venture has secured the approval for a significant upgrade of Varkala Sivagiri railway station, with a project cost of Rs 123.36 crore. In this partnership, KRDCL takes the lead with a 51 percent share, while RVNL holds 49 percent. The said order will be executed in 30 months as stated in an official filing by RVNL with the exchange.
Further, Rail Vikas Nigam has also signed a contract with REC, as disclosed in a separate filing with the BSE on January 2. In this collaboration, RVNL will propose financially viable projects with assured or projected revenue/returns. REC, in response, will explore financing options directly for these projects, following pre-stipulated conditions and returns. The aim of this partnership is to boost railway infrastructure and financial efficiency, signifying a noteworthy stride in the development of the railway sector through strategic cooperation between Rail Vikas Nigam and REC.
The RVNL stock has given a return of 48.67 per cent over the last six months. The benchmark Nifty50 index has given a return of 12.13 percent over the same duration.
On technial setup, support on the counter could be seen at Rs 178, followed by Rs 170 level. A fall below the Rs 170 zone can trigger a further downside. On the higher side, the stock may revisit one-year high level if it breaks above its immediate resistance, placed at Rs 188.
“Support will be at Rs 178 and resistance at Rs 188. Expected trading range will be between Rs 165 and Rs 210 for a month,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
“RVNL stock price looks slightly bullish on daily charts with strong resistance at Rs 199. A daily close below support of Rs 170 could lead to Rs 145 in the near term,” said AR Ramachandran from Tips2trades.
“One can expect a near-term target of Rs 200. Keep stop loss placed at Rs 175,” said DRS Finvest founder Ravi Singh.
The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) came at 63.19. 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 27.12 against a price-to-book (P/B) value of 5.30.
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.
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