RVNL Share News: On Friday, the shares of Rail Vikas Nigam Limited (NSE: RVNL) closed at Rs 410.80 on NSE with a gain of 9.18%. With this, the company’s market cap increased to Rs 85,402.42 crore.
Let us tell you that, the shares of Rail Vikas Nigam Ltd (RVNL) have dropped nearly 37% from their peak price level. On July 15, 2024, the multibagger railway stock reached a record high of Rs 647. However, despite the short-term slump, RVNL’s stock has increased 205.73% in the last two years and 1060% in the last three years. The stock has dropped up to 1.30% in the last 6 months.
Market experts are highly bullish on RVNL stock and have given new price targets. Check details.
Why RVNL Share is Rising?
RVNL shares along with other railway stocks including IRFC, Railtel, Jupiter Wagon, Texmaco Rail, IRCTC also experienced significant gains yesterday. Analysts claim that this rally came due to broader market bullish sentiment in the Indian stock market.
RVNL Order Details
RVNL also secured a Rs 115 crore order for infrastructure from Central railway. In order to reach the 3000 MT loading target, Central Railway has granted Rail Vikas Nigam Limited a letter of authorization (LOA) for OHE modification work to upgrade the current 1×25 KV electric traction system to 2×25 KV at the feeding system in the Itarsi-Amla Section of the Nagpur Division of Central Railway.
RVNL Stock Analysis
In terms of technical analysis, The relative strength index (RSI) at 69.5 indicates that RVNL shares are currently neither trading in an overbought zone nor in an oversold zone. RVNL shares are currently trading above its 5-day, 10-day, 20-day, 30-day and 50-day, 100-day, 150-day moving averages which indicates that RVNL stock is recovering and forming a bullish trend reversal.
RVNL Share Price Target and Stop Loss
SEBI registered analyst Navodit Tiwari has set a target of Rs 480 – Rs 490 on the current price for RVNL shares. If the stock sustains the aforementioned targets then, it could reach Rs 520 – Rs 540. According to the market expert, RVNL shares are making a bullish move after experiencing a decent correction. In case of a fall, he has advised to maintain a strict stop loss at Rs 300.
Also Read: IRFC Share Price Target From 2025-2050
Should You Buy RVNL Shares?
The SmallCap sector has experienced 8% gains in the last week. In addition, the ceasefire between India and Pakistan, US-India Trade Optimism are also influencing the stock price. Despite the significant gains, Analysts say that the short-term to medium term outlook for railway stocks are negative.
Future Outlook for RVNL Shares
RVNL is a very strong fundamental stock, backed by government’s support and a strong order book. With India’s expansion of Railway infrastructure going on, RVNL is poised for significant growth in the future. However, Navodit Tiwari has highlighted that RVNL’s PE ratio is still high.
On the technical perspective, RVNL has already broken its previous support zone which is now acting as resistance. This indicates that RVNL is bullish with added volume and renewed strength.
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