Shares of Rail Vikas Nigam Ltd (RVNL) have delivered multibagger returns in the last two years. The multibagger stock, which closed at Rs 32.85 on August 29, 2022 rose to a high of Rs 600 today, clocking 1,718% returns during the period. In comparison, the benchmark BSE 500 index climbed 50% in two years. In the current session, RVNL shares rose 3.75% to a high of Rs 599.75 on BSE after the firm said it has inked a MoU with Patel Engineering. Total 6.86 lakh shares of RVNL changed hands amounting to a turnover of Rs 40.51 crore.
Market cap of RVNL stood at Rs 1.23 lakh crore on BSE. RVNL shares have a one-year beta of 1.3, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of RVNL stands at 55.6, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Antique Broking in a recent report assigned a sell call to the stock with a price target of Rs 283. The brokerage finds the stock overvalued and said lot of opportunities are in the planning stage.
RVNL has been inking memorandum of associations (MoUs), but is awaiting order finalisations. The railway PSU's order book is dominated by nomination orders, the brokerage said. A lot of opportunities are still in the planning stage and the stock valuation (EPC business) at 62 times H1FY27 EPS is making it apprehensive about the scope of stock price appreciation from the prevailing market price.
"The stock trades at an expensive valuation of 66 times/ 59 times at its FY26E/27 EPS. We have a SELL rating and a SoTP-based target price of Rs 283. Risks to our rating are execution uptick and order wins. We have modelled in an inflow of Rs 25,000 crore per annum over FY25-27E," said Antique.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One sees the near-term support for the RVNL stock at Rs 550, followed by the Rs 520 subzone.
Krishan said that once the stock crosses resistance levels of Rs 600-620 decisively, fresh traction is likely on the counter.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher finds the resistance for the stock at Rs 600 level. Once this tough resistance is breached, the stock is likely to rally to a price target of Rs 647. The near term support lies at Rs 554 level, he said.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers expects the stock to move in a range of Rs 565-Rs 625 in the short term. Support for the stock lies at Rs 570 and resistance is at Rs 595, said Patel adding that once the stock closes above Rs 595 level decisively, it may hit the price target of Rs 615.
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.