Business News/ Markets / Stock Markets/  Rail Vikas Nigam share price breaks 3 days winning streak, to drop over 3%

Shares of Rail Vikas Nigam Ltd (RVNL) gained on Thursday's early trade but the stock slipped into to the red zone and lost over 3%.

According to analysts the stock has seen vertical upmove and indicators are highly overbought. However, there are no signs of weakness, but it would be apt to book some profits.

The stock was up over 5% in today's early trade and touched a new 52-week high of 139.50 on BSE.

The stock opened at 135.65, up 4.2% from previous close price of 130.20.

On Wednesday's trade, shares of Rail Vikas Nigam Ltd was up for the third straight day and recorded a new 52-week high of 130.

The market value of the shares has increased by 20.38% in the past week, and by 67.35% in the past month. In the last 20 days, the stock has doubled.

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, the company is in action post getting granted 'Navratna' status, which means RVNL would get a bigger award of contracts and opportunities from Indian Railways on behalf of the ministry for projects assigned to it for execution.

“The outlook for the long term would be re-rated post the change in status and likely to benefit from the Government Infra capital infrastructure (capex) push. Investors if they are holding should think of booking profits as the stock has rallied more than 60% in the last two weeks," added Tapse.

RVNL stock is trading at FY25 EV/EBITDA of 10.9X, which is on the higher side compared to its long-term average of 7.0X, according to Vinit Bolinjkar, Head of Research, Ventura Securities.

“Though the valuations are on the higher side, RVNL is entering the next leg of growth through diversification and faster project execution. We believe that the company should be looked at as a multi-year growth story and we recommend holding it for the long-term period. Given the order booking pipeline of Indian Railways for the next 7-8 years, we believe that the order inflow could sustain RVNL," added Bolinjkar.

Rail Vikas Nigam share price touches new 52-week high today; check details

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Updated: 04 May 2023, 09:44 AM IST
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