Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

RVNL shares dip despite strong operational income and new contract wins

EditorAmbhini Aishwarya
Published 10/11/2023, 07:36
© Reuters.

Shares of RVNL) experienced a decline on Friday, despite a sequential net profit rise of 15% and a modest year-on-year profit increase of 3.4%. The stock dropped to ₹155.3 on the National Stock Exchange (NSE) by morning and further slid to ₹156.9 by midday.

The company's other operation income saw a significant boost of 33% for the quarter. However, EBITDA fell by 5.6%, reducing the quarter's margin to 6.1%. Despite these mixed results, the stock's technical indicators were bearish with RSI (14) at 52.4 and MACD at -1.1, yet 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 expected 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, received a Letter of Acceptance (LOA) for two major contracts from Western Railways for track works in Vadodara Division. These contracts are collectively valued at ₹420 crore (INR100 crore = approx. USD12 million).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.