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Shares of Rail Vikas Nigam Ltd (RVNL) surged 4% to reach a day’s high of Rs 416.35 on the BSE on Wednesday; Check target price
RVNL Shares
Shares of Rail Vikas Nigam Ltd (RVNL) surged 4% to reach a day’s high of Rs 416.35 on the BSE on Wednesday, February 5, after the company received a letter of acceptance (LoA) from East Coast Railway for a Rs 404.4 crore contract under the Koraput-Singapur Road Doubling Project.
In a post-market filing on February 4, RVNL announced that the LoA pertains to the ‘Koraput-Singapur Road Doubling Project,’ which involves the construction of 27 major bridges, earthwork for track formation, protection works, and other miscellaneous tasks between Tikiri and Bhalumaska stations in Odisha. RVNL has been given 30 months to complete the project.
Earlier, on December 31, 2024, RVNL had revealed that it had emerged as the lowest bidder for the project.
RVNL shares have experienced significant volatility in recent days. Prior to Finance Minister Nirmala Sitharaman’s presentation of the Union Budget 2025-2026 on February 1, the stock, along with other railway stocks, surged, hitting a one-year high of Rs 501. However, after the budget speech, which contained no major reforms for the sector and kept the FY26 capital expenditure for Indian Railways unchanged at Rs 2.52 lakh crore, the stock fell. RVNL’s shares are currently down nearly 18% from their February 1 peak.
Additionally, RVNL announced that its board of directors will meet on February 12 to approve the company’s financial results for the quarter and nine months ended December 31, 2024. The stock is likely to remain under close scrutiny before and after the Q3 results are released.
RVNL Shares Target Price
According to Trendlyne data, the average target price for RVNL shares is Rs 357, suggesting an 11% downside from current levels. The consensus recommendation from two analysts is a ‘Sell.’
RVNL Shares Performance
On Tuesday, February 4, RVNL shares closed at Rs 400.2, down 1.73% on the BSE, while the Sensex gained 1.8%. Over the past six months, RVNL’s stock has declined by 32%, but it has surged by 453% over the last two years. The company’s market capitalization stands at Rs 83,442 crore.
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