RVNL share price: RVNL was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. RVNL share price: RVNL was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. RVNL share price: RVNL was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. Shares of Rail Vikas Nigam Ltd (RVNL) continued their upward move on Tuesday for the second straight session. The stock today jumped 10 per cent to hit its 52-week high of Rs 118.40 against a previous close of Rs 107.64. At today's high price of Rs 118.40, the counter has surged 308.28 per cent from its 52-week low of Rs 29, a level seen on June 21, 2022. The multibagger counter has gained 249.25 per cent in the past one year.
Today's sharp movement in the share price came due to three reasons.
First, RVNL has emerged as the lowest bidder for three underground packages of the Chennai Metro Rail Limited (CMRL) phase-II project, worth Rs 3,146 crore (in total).
Second, the company has been granted the 'Navratna' status by the Department of Public Enterprises. With this, the central public sector enterprise (CPSE) became the 13th 'Navratna' among CPSEs.
And third, RVNL-SCC joint venture has emerged as the lowest bidder for "planning, design and construction of main canal and structures including associated distribution system to provide irrigation facility to 41903 ha. area through piped irrigation network for upper high-level canal of Mahi Bajaj Sagar Project, Banswara (Raj) on Engineering, Procurement and Construction (E.P.C.) single responsibility turnkey basis, including 10 years O&M."
The project is worth around Rs 2,249 crore, in which RVNL's share is 51 per cent and SCC's share is 49 per cent. It has to be completed in 42 months.
On the technical front, a couple of analysts hinted that more upside on the counter could be possible, while one advised against fresh buying at current levels.
"The stock has witnessed a decent rally. The next round of momentum can be expected for a further target of around Rs 140," said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher.
"The next target is Rs 188 in the following six months. Maintain stop loss at Rs 75," said Ravi Singhal, CEO at GCL Broking.
"At the current juncture, fresh buying is not advised at all. As of now wait and watch," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
RVNL was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 89.12. 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 17.33. It has a price-to-book (P/B) value of 3.64.
Yet, RVNL has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 64.50 per cent. The scrip has a one-year beta of 0.90, indicating low volatility.
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, projects and contract management.
Meanwhile, Indian equity benchmarks rose in early trade today, extending their climb for the eighth straight session. The domestic indices traded higher led by strong buying interest in banks, financials, technology, metal and energy stocks.