Rail Vikas Nigam Ltd shares have snapped two-day gaining streak today after the railway firm announced its Q4 earnings and annual earnings. RVNL was down 3.66% to Rs 117.10 against the previous close of Rs 121.55 on BSE. Later, the shares fell 4.67% to Rs 116 on BSE. The company's total shares of 7.74 lakh changed hands, amounting to a turnover of Rs 9.06 crore. The RVNL market cap rose to Rs 24,394 crore from Rs 32,394 on the BSE. On June 21, 2022, the stock fell to a 52-week low of 29 on June 21 and a record high of 144.50 on May 8, 2023.
RVNL's relative strength index RSI stands at 61.6, signaling it's trading neither in the overbought nor oversold zone. RVNL stock has a one-year beta of 0.8, indicating very low volatility during the period. Vikas Nigam stock is trading more than the 5 day, 50 day, 100 day and 200 day moving averages, but less than 20 day moving averages.
PSU's stock remains a multibagger, up 261% in a year and up 71% in 2023. However, the 30-stock Sensex has surged by 12.36% in a year and 3.29% in 2023. The parent index BSE 500 has risen 11.25% in a year and 2% in a year-on-year basis.
The most recent breakout in RVNL was seen at Rs 84 levels, VP of InCred Equities said. The stock formed a bearish dark clouds cover pattern on the weekly charts some time back, which is a reversal pattern in nature. The pattern was followed by a few weak candles, indicating that the stock could encounter incremental profit booking in the next few weeks. The next set of support is seen at Rs 100, which can be a good level to buy the stock for a fresh upside till Rs 140 - 150. The consolidated net profit of Vikas Nigam was reduced to 359.3 crore from 378 crore in the corresponding period last year. Revenue from operations in Q4 fell 11% to Rs 5719. INR 8.0 crore compared to Rs 6 437. In the year-ago period, the company generated a revenue of 5 trillion rupees. In Q4 EBITDA fell 8.33% to Rs 374.37 crore compared to Rs 408.38 crore in the March quarter of 2022.
On a annual basis, net profit zoomed 28% to Rs 1420 crore for the fiscal ended March 2023, compared to Rs 1110 crore profit for the fiscal ended March 2022. Revenue climbed 4.64% to Rs 20,281 in the March 2023 fiscal compared to Rs 19381 for the fiscal end of March 2022. EBITDA zoomed 5.39% to Rs 1246.77 crore in the last fiscal, against Rs 1182.96 crore in the March 2022 fiscal.
From Tips 2 trades, Abhijeet said below average Q4 FY 23 results have anticipatedly ensured that RVNL stock price could remain bearish with strong resistance at Rs 122.4 on the daily charts. A daily close below support of Rs 111 could lead to a target of Rs 88 in the near term. The board recommends a final dividend of Rs 0.36 per share, which is 3.60 per cent on the paid-up equity share capital for the financial year 2022 - 23. The dividend will be paid within 30 days from the date of its declaration at the company's meeting.
RVNL, an Indian Railways arm, works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and encompasses the entire process of project development from conceptualization to commissioning, including stages of design, preparation of estimates, calling and award of contracts, project and contract management.
Is RVNL stock going to double-digit mark?