RVNL shares recover 306% from 52-week low; here are the new price targets

Shares of Rail Vikas Nigam Ltd (RVNL) have recovered 306% from their 52-week low in less than a year. The stock of the railway firm hit a yearly low of Rs 30.55 on August 23, 2022. RVNL stock closed 2.60% higher at Rs 124.10 in the previous session on BSE. On July 24, the RVNL stock touched a 52-week high of Rs 146.65 on BSE. The railway stock has zoomed 301% in a year and gained 81% in 2023. In comparison, Sensex has risen 15.56 per cent during the period.

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RVNL shares opened higher at Rs 122.40 against the previous close of Rs 120.95 on BSE. During the session, the stock rose 4.05% intraday to Rs 125.85. Total 43 lakh shares of the firm changed hands amounting to a turnover of Rs 53.32 crore. Market cap of RVNL rose to Rs 25,875.10 crore on BSE. The stock has risen 546% in three years.

In terms of technicals, the relative strength index (RSI) of RVNL stands at 49.7, signaling it's trading neither in the overbought nor in the oversold zone. RVNL stock has a one-year beta of 0.8, indicating very low volatility during the period.

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Here’s a look at what analysts said on the outlook of the stock.

Aditya Gaggar, Director of Progressive Shares said, “RVNL has witnessed a spectacular run-up from Rs 56 (February 2023) to Rs 144 (May 2023) without any considerable pullback which led to an overbought condition and eventually, the stock entered into a consolidation phase. Recently, the stock has regained its momentum and given a breakout from a Pennant and Pole formation with volumes. The stock price was seen at a new high while RSI failed to move in tandem which resulted in a bearish divergence and the stock price corrected, which was coupled with the OFS news. The overall uptrend remained intact and the target of the pattern comes to around Rs 199.”

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Abhijeet from Tips2Trades said, “RVNL stock price is slightly bullish with strong resistance at Rs 126 on the Daily charts. A daily close below the support of Rs 119 could lead to a target of Rs 110 in the near term."

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock after the decent spurt to touch the peak zone of Rs 146 has resisted and witnessed some profit booking to take support near the Rs 119-120 levels. Once again, the bias has started showing improvement and a reversal is indicated with once again the target expected at Rs 135-140 levels from here on with the RSI showing a buy signal with much upside potential. The support would be strong near Rs 119 zone.”

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Manoj Dalmia, CEO of Proficient Equities said, “RVNL has been effectively using its capital to generate profit. In the last 3 months, its share price moved up by 15%. Investors can wait to accumulate considering current levels. Rs 110 can be a good level to accumulate. Additionally, any closing above Rs 148 can trigger ascending moves up to Rs 170.”

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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