Shares of Rail Vikas Nigam Ltd (RVNL) have recently experienced a significant decline, falling 18% from their record high in just two months. On July 15, 2024, RVNL shares reached an all-time peak of ₹647. However, as of today, the stock is trading at ₹531, reflecting a substantial drop. In the current trading session, RVNL shares slipped 2.3% to ₹530.50 on the Bombay Stock Exchange (BSE), with a turnover of ₹23.63 crore from 4.42 lakh shares traded. The market capitalisation of RVNL stands at ₹1.11 lakh crore, indicating its substantial presence in the market.
Technical indicators and stock performance
RVNL shares exhibit notable volatility, with a one-year beta of 1.3. The relative strength index (RSI) currently sits at 41.5, suggesting that the stock is trading neither in the overbought nor the oversold zone. In terms of moving averages, RVNL shares are trading below the 5-day, 10-day, 20-day, 30-day, and 50-day moving averages but are above the 100-day, 150-day, and 200-day moving averages. This indicates a mixed technical outlook.
Expert opinions and market forecasts
Despite the recent decline, HDFC Securities remains optimistic about RVNL. The brokerage has maintained a ‘buy’ rating on the stock with a target price of ₹700 for the next two months, setting a stop loss at ₹555. This suggests confidence in the stock's potential to rebound. If you are considering how to buy shares online, it’s worth noting the positive outlook from HDFC Securities.
Conversely, independent SEBI-registered analyst Abhijeet Ramachandran has expressed a slightly bearish view on RVNL's stock price. He notes strong resistance at ₹563 and warns that a daily close below ₹542 could lead to a further decline to ₹513 in the near term.
Technical Analyst Kushal Gandhi from StoxBox has advised caution. He highlights that RVNL's price action reverted to a distribution phase following a false start on August 30. The stock failed to regain its previous high, near ₹627 and has been trending downward. With the stock closing in the red on most trading sessions since September 13, Gandhi suggests avoiding bottom fishing in RVNL at current levels. If you’re looking to buy shares online, it might be prudent to wait until the stock shows more stability.
Brokerage assessments and stock valuation
Antique Broking recently issued a sell call on RVNL with a target price of ₹283. The brokerage expresses concerns over the stock’s valuation, noting that it appears overvalued given the numerous opportunities still in the planning stage. They cite a high valuation ratio, with the stock trading at 66 times and 59 times its FY26E and FY27 EPS, respectively. Antique Broking's report indicates that the stock's current price may not have much room for appreciation, recommending a SELL rating based on these valuations.
Conclusion
RVNL, an executing arm of Indian Railways, has faced a significant drop in share value from its record highs, reflecting broader market concerns and mixed expert opinions. As RVNL continues to work on various projects and awaits order finalisations, potential investors should carefully consider these dynamics. For those interested in capitalising on stock market opportunities and considering how to buy shares online, it’s crucial to stay informed and assess the latest market trends and expert analyses.
If you’re looking to invest, consider the current market conditions and expert advice before making decisions. For more information on how to buy shares online and stay updated on market movements, keep an eye on reliable financial sources and consult with investment professionals.
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