RVNL shares rally over 1,000% in 2 years. Should investors book profits or buy the dip?

RVNL’s order inflow in FY25 is guided to be in the range of Rs 20,000 crore - Rs 25,000 crore and it aspires to maintain a book to sales ratio in the range of 3x - 4x.

“We have an overall positive view on the stock for the medium to long term. At CMP the stock is trading at 39.8x/35.9x of its FY25E/FY26E Bloomberg consensus earnings estimates,” said Sunny Agrawal of .

On charts, has been trading strong for the last many months, forming a series of higher highs and higher lows with a surge in volumes. Recently, stock witnessed a sharp vertical rally after finding support near around the 20 EMA on the weekly chart. After a sharp rally, stock has now turned overbought and has also formed a negative divergence in the momentum indicator.

“We expect stocks to witness a and are likely to trade sideways before any meaningful upmove. Traders can consider booking part profits here at current levels and waiting for a dip for fresh entry. On the level front, stock has a strong support placed around the 350 zone, which coincides with its previous resistance zone. On the higher side, 390-400 acts as a strong hurdle zone for the stock,” cautioned Rohan Shah, Technical Analyst at .

Buying is visible across rail with a surge in delivery and trading volumes which is supporting the up move.

“On a monthly scale it is trending upwards and holding gains at higher levels. It has given a range breakout on weekly chart and trading at life highs which implies strength in the stock,” said Chandan Taparia, Head- Technical and Derivatives, Senior VP Research.

On a daily scale, decline is being bought into as buying is visible on dips, added Taparia stating that the overall chart setup indicates that momentum is likely to continue and stock is all set to test 500+ levels.

Momentum indicator RSI is positively placed on monthly and weekly scale which may support the ongoing up move. It is holding well above all crucial moving averages which has bullish implications.

RVNL on Thursday also informed the exchanges that they have won a Rs 38.10 crore contract from the which involves the provision of an automatic signaling system with electronic interlocking between Champa, Saragaon, and Baraduar, Sakti sections.

The project is likely to be executed within 15 months according to the company’s filing to the stock exchanges.

The shares of RVNL closed 9% higher on BSE at Rs 382.85 on Thursday.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)