RVNL (Rail Vikas Nigam Limited) witnessed a decline in its shares despite reporting a sequential net profit increase of 15% and a modest year-on-year profit growth of 3.4%. The stock dropped to ₹155.3 on the National Stock Exchange (NSE) in the morning, further sliding to ₹156.9 by midday.
While the company’s other operational income saw a significant boost of 33% for the quarter, the EBITDA fell by 5.6%, leading to a quarter margin of 6.1%. Despite these mixed financial results, the stock’s technical indicators showed a bearish trend, with RSI (14) at 52.4 and MACD at -1.1, although it remained above its Simple Moving Average (SMA) on all counts (10-day, 100-day, 150-day, and 200-day).
Despite the day’s decline and an anticipated downside of 8% from current prices according to Trendlyne data, RVNL shares have delivered impressive returns this year. The stock has rallied by 125% year-to-date and surged over 200% in the past year, leading to a consensus ‘Buy’ recommendation from two analysts.
In October, RVNL-MPCC, a joint venture of RVNL, secured a Letter of Acceptance (LOA) for two major contracts from Western Railways for track works in Vadodara Division. These contracts have a combined value of ₹420 crore.