Shares of Rail Vikas Nigam Ltd (RVNL) saw a sharp uptick in Thursday's trade on securing an order worth Rs 9,613.42 crore from Bharat Sanchar Nigam Limited (BSNL). "A Letter of Acceptance has been received from BSNL for 'Development (Creation, Upgradation and Operation & Maintenance) of Middle mile network of Bharat Net on Design Build Operate and Maintain (DBOM) Model," the rail PSU stated in a BSE filing.
RVNL shares surged 11.59 per cent to hit a high of Rs 415. The stock was last seen trading 8.52 per cent up at Rs 403.60. At this price, it has gained 80.58 per cent in a year.
Exchanges have put the securities of RVNL under the long-term ASM (Additional Surveillance Measure) framework. BSE and NSE put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
A market expert suggested long-term investors can consider adding the stock on dips. "Investors with a long-term view can add RVNL on dips, given the focus on rail infra. Railway stocks are going to perform well going ahead," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Technically, support on the counter could be seen in the Rs 390-370 range. For further upside potential, a decisive close above Rs 419 is required.
"Rs 380-370 is likely to cushion any shortcomings while Rs 450 seems to be a sturdy hurdle," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"The stock can hit an upside target of Rs 430 in the near term. Keep stop loss placed at Rs 390," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
"RVNL stock price is bullish on daily charts with strong support at Rs 385. A daily close above the resistance of Rs 419 could lead to 450 in the near term," said Sebi-registered research analyst AR Ramachandran.
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 September 2024, the government held a 72.84 per cent stake in the rail PSU.