RVNL Shares Fall 4% on Q4 Earnings; Key Points Investors Should Know

RVNL Share Price: Railway PSU Firm Rail Vikas Nigam (RVNL) shares fell 4.6 per cent in Tuesday’s intraday trade on BSE after it announced its Q4 and annual earnings. RVNL opened 3.66 per cent lower at Rs 117.10 against the previous close of Rs 121.55 on BSE. Later, the stock fell 4.57 per cent to Rs 116 on BSE. Total 7.74 lakh shares of the firm changed hands amounting to a turnover of Rs 9.06 crore. Market cap of RVNL fell to Rs 24,394 crore on BSE. The stock hit a 52-week low of Rs 29 on June 21, 2022 and a record high of Rs 144.50 on May 8, 2023.

The firm reported a consolidated net profit of Rs 359.3 crore, down 5 per cent, compared to Rs 378 crore in the corresponding period last year.

Its revenue from operations in the January-March quarter came in at Rs 5,719.8 crore, registering a decline of 11 per cent, compared to Rs 6,437.5 crore in the year-ago period.

On the operating front, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the fourth quarter stood at Rs 374.4 crore, down 8.3 per cent, compared to Rs 408.4 crore in the same period last year. The total income for the quarter under review stood at Rs 5,975.88 crore, compared to Rs 6,647.52 crore in the same period last year.

On a year-to-date basis, the stock has surged 71 per cent. The stock has delivered multibagger returns to the tune of 263 per cent in the last one year.

What Investors Should Know?

Technically, RVNL is trading above 7 out of 8 SMAs. The stock is trading higher than the 5-day, 10-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages but lower than the 20-day moving average. The day RSI (14) is at 61.6. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed. MACD is at 8, which is above its center line, but below the signal line.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, and project and contract management.