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RVNL shares dip despite strong operational income and new contract wins

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

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