Rail Vikas Nigam shares rise over 100% in six months; can they hit Rs 100 mark?

Shares of Rail Vikas Nigam Ltd (RVNL) have more than doubled in the last six months, breaking out from the consolidation zone of nearly five-years. RVNL stock zoomed 111.56% in the last six months, rising from Rs 30.70 on August 23 to Rs 64.95 today. However, the public sector stock is still trading 23% lower to the 52-week high of Rs 84.15 hit on November 29, 2022.

The 30-stock Sensex has gained 1.35% during the same period. However, the parent index BSE 500 has slipped 3.47% during the period. In the current trading session, the stock touched an intraday high of Rs 66.35 rising 6.67% on BSE. The stock has gained after five days of consecutive fall. Total 7 lakh shares of the firm changed hands amounting to a turnover of Rs 4.53 crore. Market cap of the firm rose to Rs 13,552 crore on BSE. RVNL shares have lost 5% this year and risen 104.57 per cent in a year. In a month, the stock has lost 14.84%. The stock hit a 52-week low of Rs 29 on February 24, 2022.

In terms of technicals, the relative strength index (RSI) of RVNL stands at 30.6, signaling it's neither trading in the overbought zone nor in the oversold zone. RVNL stock has a one-year beta of 1 indicating average volatility during the period. Rail Vikas Nigam stock is trading higher than the 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.

In the December quarter of this fiscal, net profit climbed 30.51% to Rs 382.42 crore against Rs 293.01 crore during the previous quarter ended December 2021. Sales stood flat at Rs 5012.09 crore in Q3 against Rs 5049.24 crore during the quarter ended December 2021.

Here’s a look at what analysts said about the prospects of the RVNL stock.

Abhijeet from Tips2trade said, “Rail Vikas Nigam stock price faces strong resistance at Rs 75 on the Daily charts. A daily close above this level is bullish and could lead to targets of Rs 83-97 in the near term."

Vaishali Parekh, Vice President for Technical Research at Prabhudas Lilladher said, "The stock has corrected well from the peak zone of Rs 82 where it had indicated a double top formation pattern on the daily chart and has come near to the previous bottom of Rs 60 level, which is the near-term support zone and expect some consolidation. A decisive breach below that zone would trigger fresh selling with the next downside target of Rs 54 levels. The RSI is highly in the oversold zone and the chances of some revival in the coming days cannot be ruled out. For the bias to improve, a decisive move past Rs 67 level is required which can further carry on the positive momentum ahead to retest the previous peak zone of Rs 82 level."

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.

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