RVNL shares soared 53% in a month, still down 8% from record high; what's next?

Shares of Rail Vikas Nigam Ltd (RVNL) on Wednesday settled 0.65 per cent higher at Rs 392. At this price, the stock has gained 53.24 per cent in the past month. With that being said, it has given multibagger returns by rallying 221.44 per cent in a year. Despite the mentioned rise, the scrip has slipped 7.75 per cent from its all-time high value of Rs 424.95, a level seen earlier this month on June 3.

The rail PSU has been securing significant order wins over the recent past. Recently, it has emerged as the lowest bidder for a project from Central Railway worth Rs 138.46 crore. In addition, RVNL has bagged a letter of acceptance from Bangalore Metro Rail Corporation for a contract valued at Rs 394.24 crore.

On technical setup, support on the counter could be seen at the Rs 380-360 zone. And, decisive close above Rs 400 level is required for further upside.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "RVNL continued its upward trend despite being overbought, showcasing inherent strength in the counter. Support lies around the Rs 360 zone, while resistance could be seen at Rs 400-420 levels. It is advisable to have a pragmatic approach at the elevated zone."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has shown signs of improvement after it crossed the resistance zone of Rs 385 level. It is once again indicating a trend reversal on daily charts. We suggest buying the stock for an upside target of Rs 417, keeping the stop loss at Rs 372."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock looked strong on daily charts. It has the potential to hit an upside target of Rs 405. Keep stop loss placed at Rs 387."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 380 and resistance at Rs 400. A decisive close above Rs 400 level may trigger a further upside towards Rs 420. The expected trading range will be between Rs 370 and Rs 435 for a month."

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, project and contract management.

As of March 2024, the government owned a 72.84 per cent stake in the state-run firm.