Rail Vikas Nigam Ltd (RVNL) shares extended their losing run for the fifth straight session on Friday. The stock plunged 4.99 per cent to close at Rs 332.95. At this price, it has tumbled 14.41 per cent in the last five trading days and crashed 44.61 per cent in six months.
Today, the state-owned rail player informed exchanges that it received three demand notices worth Rs 1.49 crore, Rs 81.55 lakh and Rs 25.72 lakh from the Deputy Commissioner (Ranchi South Division, Jharkhand), the Commissioner of Central GST and Central excise (Shimla, Himachal Pradesh) and the Assistant Commissioner (Delhi), respectively. These marked the fourth demand notice against RVNL this week. Earlier on February 24, the company got another demand notice valued at Rs 18.11 lakh from the Joint Commissioner of State Tax (GST), Special Circle (Patna, Bihar).
The company has a Rs 97,000-odd crore order book, excluding Vande Bharat. "This (order book) is excluding Vande Bharat, because Vande Bharat, we are not taking it in that sense, because it will start generating revenue after maybe a year or so. So, we are keeping it slightly, as far as our calculation is concerned, we are not adding it for the time," said charperson and managing director Pradeep Gaur.
A market expert suggested buying RVNL shares on dips. On the technical play, support on the counter could be seen in the Rs 329-310 range and immediate resistance may be found in the Rs 350-380 zone.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, advised investors to accumulate RVNL shares on dips.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "RVNL has been witnessing persistent selling pressure. The counter has historical support placed around the Rs 320-310 subzone, which is likely to be seen as a critical support zone. On the higher end, a decisive breach beyond Rs 380 could only trigger fresh momentum in the counter."
Sebi-registered research analyst AR Ramachandran said, "RVNL is bearish on daily charts with strong resistance at Rs 350. A daily close below the support of Rs 329 could lead to a downward target of Rs 295 in the near term."
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 December 2024, the government held a 72.84 per cent stake in the rail PSU.