Mumbai, May 27, 2024 – Shares of Rail Vikas Nigam Ltd (RVNL) continued their impressive performance in Monday’s trading session, surging 7.92% to reach an all-time high of Rs 399.70. The stock was last seen trading 3.20% higher at Rs 382.20. This marks a significant year-to-date (YTD) gain of 109.83% for the multibagger scrip.
The rally in RVNL’s stock comes on the back of the company emerging as the lowest bidder for a project by Maharashtra Metro Rail Corporation Limited (Nagpur Metro), which involves the construction of six elevated metro stations at an estimated cost of Rs 187.34 crore.
Technical analysis suggests that RVNL has strong support at Rs 345, with immediate resistance at Rs 400. Jigar S Patel, Senior Manager – Technical Research at Anand Rathi Shares and Stock Brokers, commented, “Support will be at Rs 345, and immediate resistance will be at Rs 400. A decisive close above Rs 400 may trigger further upside, with the expected trading range between Rs 325 and Rs 415 for the next month.”
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, echoed similar sentiments, stating, “Near-term resistance will be at Rs 400. A decisive breach above this level is required for more upside.”
RVNL, a key executing arm of Indian Railways, operates on a turnkey basis, managing the full cycle of project development from conceptualization to commissioning. The company undertakes stages including design, preparation of estimates, contract awards, and project management on behalf of the Ministry of Railways.
As of the March 2024 quarter, the government holds a 72.84% stake in RVNL, underscoring its strategic importance in the nation’s rail infrastructure development.
