RVNL shares surge 8%, target price of ₹470-500; positive.
From CNBC TV18: 2024-06-21 05:33:25
Shares of Rail Vikas Nigam Ltd. (RVNL) have surged by 8% on June 21, nearing its all-time high of ₹425. The stock has already risen by 125% this year. Over the past year, RVNL shares have given multibagger returns, rallying 230%. The company has secured multiple orders in recent months, including contracts from East Coast Railway, Central Railway, Bangalore Metro Rail Corporation, NTPC, Dakshin Haryana Bijli Vitran Nigam Limited, and Eastern Railway. Mehta Equities remains bullish on RVNL with a target price of ₹470-500 in the next 12 months. Other railway PSUs are also trading higher, with companies like IRFC Ltd., IRCON International Ltd., RailTel Corp., Titagarh Rail Systems, and IRCTC seeing gains of up to 11%. RailTel shares jumped 11% after receiving a project worth ₹20.22 crore from South Central Railway for telecommunication works. Analysts expect positive developments in the railway sector due to the government’s modernisation and expansion plans, recommending investors to accumulate quality railway stocks. The current gains in rail stocks reflect a bullish sentiment towards railway-related sectors amidst recovery trends in travel and transportation post-pandemic. Majority of railway stocks have been breaking out with healthy volumes, with Railtel being a preferred pick for medium-term investors targeting ₹500.
Read more at CNBC TV18: RVNL shares may touch ₹500, as per this analyst; Check how other rail stocks are faring