RVNL's stock reached a new high! 36% increase in stock in just two sessions

 

 

 

8/7/2024,

RVNL share price: At Rs 567.75, the stock soared 15.53 per cent to a new all-time high. At this level, the stock has increased by 35.58% throughout two consecutive sessions and has produced multi-bagger gains, rising by more than 201% year to date (YTD).

 

 

In Monday's trading, Rail Vikas Nigam Ltd. (RVNL) shares maintained their record run. The stock shot up 15.53 per cent to Rs 567.75, a new all-time high. At this level, the stock has increased by 35.58% throughout two consecutive sessions and has produced multi-bagger gains, rising by more than 201% year to date (YTD).

 

Approximately 1.15 crore shares of the scrip were traded at the time this piece was written, reflecting the high trading volume on the BSE today. The amount exceeded the 26.44 lakh share two-week average volume. At Rs 633.10 crore, the counter's turnover generated a market capitalization (m-cap) of Rs 1,17,240.68 crore. Additionally, there were 5,98,990 sell orders compared to 3,43,877 share buy orders.

The railway PSU has been obtaining new contracts and making significant agreements. A Memorandum of Understanding (MoU) was recently signed by it and Delhi Metro Rail Corporation Ltd (DMRC).

 

"RVNL has signed an MoU with Delhi Metro Rail Corporation Limited (DMRC) for participation in the upcoming projects in India and abroad as a Project Service Provider for Metro, Railways, High-Speed Rail, Highways, MegaBridges, Tunnels, Institutional Buildings/ Workshops or Depots, S&T works, and Railway Electrification," according to an exchange filing.

 

Before this, the state-owned company placed lowest for a Rs 132.59 crore Central Railway contract.

Separately, 2,500 new general passenger rail cars are being produced, according to Railway Minister Ashwini Vaishnaw. He added that permission has been given to produce 10,000 more of these coaches.

 

Based on the setup, the counter was trading above the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs). After 14 days, the counter's relative strength index (RSI) was 87.76. A level below 30 is considered to be oversold, whereas a value beyond 70 is considered to be overbought.

 

 

 

The price-to-equity (P/E) ratio of the company's stock is 70.04, compared to a price-to-book (P/B) ratio of 13.03. The earnings per share (EPS) was 7.02, while the return on equity was 18.60.

 

RVNL is the ministry's execution arm; it works for the ministry and on its behalf to complete the projects assigned to it. It operates turnkey, handling every step of the project lifecycle from conception to commissioning, including design phases, estimate preparation, contract calling and awarding, and project and contract administration.

 

The government-owned 72.84 per cent of the rail PSU as of March 2024.