RVNL Share Price Target: How To Trade Navratna PSU Stock On MSCI India Index Inclusion?

Following the announcement on August 12 that Rail Vikas Nigam Ltd. will be included in the MSCI India Index, which is an arm of the MSCI Global Standard Index, the company's shares opened on the BSE on Tuesday at Rs 582.75 apiece and surged to an intraday high of Rs 601.75. RVNL shares closed at Rs 569.45 a share at the closing hour.

RVNL Q1 Results

According to an exchange filing, state-owned Rail Vikas Nigam Ltd (RVNL) reported a roughly 35% drop in consolidated net profit to Rs 223.92 crore in the June quarter of FY25, as opposed to a net profit of Rs 343.09 crore in the April-June quarter of the previous fiscal year, 2023-24. From Rs 5,853.18 crore in the same period last year to Rs 4,336.75 crore during Q1FY25, the company's total income dropped. Revenue from operations for the April-June 2024 period was Rs 4,074 crore, a drop of 27 per cent from the equivalent period of the previous year of Rs 5,572 crore. EBITDA for the first quarter of this year was Rs 189 crore, down 48% year over year (YoY) from Rs 349 crore in the same quarter of the previous year. Furthermore, margins plummeted to 4.5% from a year earlier by 180 basis points.

RVNL Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "RVNL is currently trading around the 569 level and has recently pulled back from higher points but found support near 540. The stock is maintaining its position above the short-term (20-day) EMA, which indicates strength in the ongoing uptrend. Moreover, the increasing trading volume suggests growing market interest in the stock. To continue its upward trajectory toward all-time highs, RVNL must sustain above the 600 level."

"The Relative Strength Index (RSI) is around 53, implying that the stock is not overbought and has room for further upward movement. Furthermore, RVNL is trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, confirming the strength in the current uptrend. There is a minor resistance around the 600 level. Once the stock surpasses this resistance, it could potentially move towards its all-time high levels, presenting a favorable trading opportunity for both investors and traders," the analyst recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.