RVNL share price- The poor Q1 results in 2024 have caused the shares of Rail Vikas Nigam Limited (RVNL) to plunge for the past two sessions. The share price of RVNL fell precipitously in two sessions, from about ₹566 per share to ₹515 on the NSE. This represents a correction of almost 9 percent. On the other hand, stock market experts think that a decline in RVNL shares presents a long-term investor opportunity. The paralysis of policy during the Lok Sabha elections caused the railway PSU to perform poorly in the first quarter of the current fiscal year. Given the formation of the new government following the outcomes of the Lok Sabha election, they predicted that RVNL will rebound in the upcoming quarter. On every 5-7 percent decline from the current levels, they recommended RVNL shareholders to buy more shares.
RVNL’s share price opened lower today at ₹538 after falling about 5% on Thursday. It then hit an intraday low of ₹515.40 per share on the NSE, a 9% decline from its closing on Wednesday of about ₹566 a share.
Review of RVNL Q1 results in 2024
Seema Srivastava, Research Analyst at SMC Global Securities, commented on the reason for the ongoing selling of RVNL shares, saying, “RVNL shares are nosediving for the last two sessions due to the weak Q1 results.” The PSU enterprise’s net income and profit have dropped dramatically. Nevertheless, considering the policy stalemate brought on by the Lok Sabha elections held in the first quarter of the current fiscal year, the state-owned railway firm is deserving of a pass. It is anticipated that the business will recover significantly following the establishment of the Modi 3.0 central government.Â
Target share price for RVNL
Ganesh Dongre, Senior Manager, Technical Research at Anand Rathi, discussed the prognosis for RVNL shares, saying, “The price of RVNL shares is declining following the formation of the short-term peak on the technical chart. The price of RVNL’s shares is currently between ₹495 and ₹590, and if it breaks below its present support level of ₹495, it could drop even lower. Thus, it is recommended that RVNL shareholders keep their stop loss at ₹495, and that new investors hold off until the price stabilizes.
“After the stock stabilizes, shares of RVNL can be purchased on each 5–7% decline. A ‘buy-on-dips’ approach can be used by those with a strong tolerance for risk to purchase RVNL shares at the current price. But only long-term investors should use this method, according to Seema Srivastava of SMC Global Securities.
RVNL Q1 2024 results
For the first quarter ending in June 2024, RVNL recorded a 35% decrease in its consolidated net profit, with earnings of ₹224 crore, as opposed to ₹343 crore in the same quarter the previous year.
Operating revenue for the April–June 2024 period was ₹4,074 crore, a 27% decrease from the ₹5,572 crore in the same period of the previous year.
Compared to ₹349 crore in the same quarter previous year, EBITDA for the first quarter of this year decreased by 48% year over year (YoY) to ₹189 crore. Furthermore, margins decreased to 4.5% from a year earlier by 180 basis points.
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