Rail Vikas Nigam Ltd (RVNL) shares surged 4.62 per cent in Tuesday's trade to hit a high of Rs 601.75. As the session progressed, the stock erased a major chunk of its gains and was last seen trading 0.60 per cent up at Rs 578.65. At this price, the multibagger rail PSU's scrip has rallied 217.68 per cent on a year-to-date (YTD) basis. That said, it has slipped 7.59 per cent in the past one month.
During the first quarter ended on June 30, 2024 (Q1 FY25), the state-owned firm posted a 35 per cent decline in its consolidated net profit, at Rs 224 crore, as against Rs 343 crore in the year-ago period. Revenue from operations during the April-June 2024 period fell 27 per cent to Rs 4,074 crore compared with Rs 5,572 crore posted in the corresponding period last year.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "RVNL recorded a drop in its Q1 FY25 results. But the stock is holding up, given the momentum in the railway sector. One can hold on to it for a medium- to long-term perspective. The counter has now resumed its uptrend after some consolidation."
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Support is expected around the 550-500 range, while resistance may be encountered near the Rs 610 zone.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 550 and resistance at Rs 610. A decisive close above Rs 610 is required for more upside. The expected trading range will be between Rs 550 and Rs 620 for the short-term."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking also echoed similar views. "Immediate hurdle will be at Rs 610 level. And, support can be seen at Rs 550," Singh stated.
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, projects and contract management.
As of June 2024, the government held a 72.84 per cent stake in the rail PSU.