Source – https://www.indiatoday.in/business/story/rail-vikas-nigam-limited-multibagger-stock-share-price-today-experts-bullish-2430698-2023-09-04
Publisher – India Today
Rail Vikas Nigam Limited (RVNL) witnessed a sharp rise in Monday’s trading, reaching a fresh 52-week high. The stock surged by 17.22 per cent to reach Rs 162.05 on the Bombay Stock Exchange (BSE) at around 1:20 pm.
It may be noted that this multibagger stock has gained approximately 136.32 per cent in 2023 and an impressive 391.65 per cent in the past year.
The development comes after the company announced in an exchange filing that is annual general meeting is scheduled for September 27, 2023. It also revealed that it had received a letter of acceptance (LOA) from Madhya Gujarat Vij Company Ltd (MGVCL) a couple of days ago for a project worth Rs 322.08 crore with a tenure of 31 months.
It is worth mentioning that RVNL serves as the executing arm of Indian Railways, handling projects from conceptualization to commissioning on a turnkey basis. It manages various stages of project development, including design, estimates, contract management, and project execution, on behalf of the Ministry of Railways.
Stock market experts are bullish about the company, citing strong growth in the railway sector. Citing RVNL’s order book, Ashish Chaturmohta, Executive Director and Fund Manager at JM Financial, told Business Today TV that “we are going to see very strong sales as well as profit”.
“The railway capex has hit Rs 2,40,000 crore, which is almost nine times compared to the 2014 railway budget. That’s why a lot of re-rating is witnessed in the railway stocks.” Chaturmohta suggested a target price of Rs 175 for RVNL,” he added.
However, analyst target prices suggest a potential downside, with Trendlyne data indicating a target price of Rs 130, implying a potential 17% decrease. RVNL had a one-year beta of 0.96, indicating average volatility.
Meanwhile, AR Ramachandran from Tips2trades told Business Today that the RVNL stock price looks bullish but overbought.
“RVNL stock price looks bullish but overbought on the daily charts with the next resistance at Rs 167.70. A daily close below the support of Rs 144.7 could lead to Rs 130.5 in the near term,” he cautioned.
