Rs 19 to Rs 126: This railway stock turned into a multibagger in a year; can it touch Rs 200 mark?

Shares of Rail Vikas Nigam Ltd (RVNL) have zoomed over 300%, delivering multibagger returns in a year. The stock of the railway firm, which closed at Rs 19.5 on July 30, 2020 hit a high of Rs 125.85 on July 31, 2023 on BSE. An amount of Rs 1 lakh invested in the RVNL stock an year ago would have turned into Rs 6.45 lakh today. In comparison, Sensex has risen 15.19 per cent during the period.

RVNL shares opened higher at Rs 122.40 against the previous close of Rs 120.95 on BSE. Later, the stock rose 4.05% to Rs 125.85 on BSE. Total 32.89 lakh shares of the firm changed hands amounting to a turnover of Rs 40.72 crore. Market cap of RVNL rose to Rs 26,083 crore on BSE. The stock hit a 52-week high of Rs 146.65 on July 24, 2023 and a 52-week low of Rs 30.55 on August 23, 2022. The stock has risen 553% in three years.

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

In terms of technicals, the relative strength index (RSI) of RVNL stands at 45.8, signaling it's trading neither in the overbought nor in the oversold zone. RVNL stock has a one-year beta of 0.7, indicating low volatility during the period. Rail Vikas Nigam stock is trading higher than the 20 day, 50 day, 100 day and 200 but lower than the 5 day and 10 day moving averages. The stock has risen 553% in three years.

ALSO READ: IRFC shares hit record high, rise for third session; buy, sell or hold?

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

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, "RVNL has seen a magnificent move in the current financial year, wherein it soared to its lifetime high of Rs 146.65. Post such a stellar move, the stock underwent some correction/profit booking and has been hovering near its 21-day EMA on the daily time frame from the past couple of trading weeks. However, the overall structure construes a strong technical setup as the stock seems to be forming a base before the next leg of rally. As far as levels are concerned, Rs 118-110 is to be considered a sacrosanct support zone, while on the higher end, the immediate resistance is placed near the lifetime high zone of Rs 145-147 in the near period."

ALSO READ: IRFC shares recover 87% from 52-week low; can they hit Rs 50 mark?

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.”

ALSO READ: Rs 29 to Rs 541: This metal stock turned into a multibagger in three years, trading near record high

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 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.”

ALSO READ: Rs 120 to Rs 1,264: This IT stock turned into a multibagger in three years; trading near 52-week high

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.

ALSO READ: Vedanta shares trading below Rs 300 mark since two months; what should investors do?

Watch: Yatharth Hospital IPO Allotment: GMP rises, check listing date, how to check allotment status, and more