Shares of Rail Vikas Nigam Ltd (RVNL) have risen 54% in five sessions, pushing the multibagger stock to a fresh record high on Thursday. The railway stock, which closed at Rs 418.75 on July 4 hit a record high of Rs 643.95 in early deals today. Amid the current leg of rally, RVNL is overbought on charts with a relative strength index (RSI) RSI of 84.4. It indicates there are more buyers than sellers for the stock in the current session.
Long term and short term investors are also bullish on Rail Vikas Nigam shares as the stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
RVNL shares hit a record high of Rs 643.95 in early deals today, rising 5.47% on BSE. Sentiment around the stock has been positive as reports said the Ministry of Railways plans to make another 10,000 non-AC coaches in 2024-25 and 2025-26 to meet the increasing demand and enhance passenger comfort for the common man on its network.
According to reports, the Ministry plans to roll out 4,485 non-AC coaches in the ongoing financial year (2024-25) and another 5,444 of these in 2025-26.
On Thursday, total 30.53 lakh shares of RVNL changed hands amounting to the highest turnover of Rs 189.78 crore. Market cap of RVNL climbed to Rs 1.28 lakh crore on BSE. RVNL shares have a one-year beta of 1.4, indicating high volatility during the period.
The stock fell to a 52-week low of Rs 117.35 on July 13, 2023.
Analysts are mostly bullish on the prospects of the stock.
Mandar Bhojane, Equity Research Analyst, Choice Broking said, "If the price breaks out above Rs 600, it suggests potential for further upward movement, with projected price targets set at Rs 700 and Rs 800. A significant support level is identified near Rs 460 on the downside. The overall trend for RVNL is bullish, with confluence from various technical indicators reinforcing the optimistic outlook”
Shiju Koothupalakkal- Technical Research Analyst, Prabhudas Lilladher said, "Once a breach above Rs 619 is confirmed, we can expect for next targets of Rs 655 and Rs 680 levels in the coming days. At the same time, a decisive breach below Rs 502-507 zone shall weaken the trend and shall negate our view."
Riyank Arora, technical analyst at Mehta Equities calls for fixing a stop loss at Rs 500 mark.
"Given the price structure, the upside potential appears limited to the Rs 650.00 to Rs 675 range. As the stock continues its upward trend, it is advisable to maintain a strict stop-loss at the Rs 500 mark," said Arora.
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.