Rail Vikas Nigam Ltd (RVNL) shares declined in Friday's trade after the state-run firm recorded a 6.20 per cent fall in its third-quarter net profit (Q3 FY24), at Rs 358.6 crore, compared to Rs 382.4 crore in the year-ago period. RVNL's revenue from operations slipped 6.40 per cent to Rs 4,689.3 crore as against Rs 275.6 crore in the corresponding period of last fiscal.
The counter today slumped 11.11 per cent to hit a day low price of Rs 250.40. At this price, it has slipped 27.55 per cent from its one-year high price of Rs 345.60, a level seen on January 23, 2024. That said, the multibagger scrip has gained 345.95 per cent from its 52-week low price of Rs 56.15, hit on March 1 last year.
Technical analysts largely observed that the stock looked 'bearish' on daily charts.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "RVNL has undergone a prise-wise correction phase after a strong vertical rally from Rs 200 to 345 levels. On the lower side, it may slip towards Rs 245 on an immediate basis. On the higher end, Rs 280-285 is likely to act as a sturdy hurdle in the near period. It is advisable to have a pragmatic approach and wait for the counter to complete its correction phase."
AR Ramachandran from Tips2trades said, "RVNL stock price looks bearish on daily charts with strong resistance at Rs 291. A daily close below support of Rs 265 could lead to Rs 245 in the near term."
DRS Finvest founder Ravi Singh said, "The stock looked weak. Those interested can buy around Rs 248-250 levels for a target price of Rs 265. Keep stop loss placed at Rs 240."
As of December 2023, promoters held 72.84 per cent stake in the company.
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.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
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