Multibagger stock: Rail Vikas Nigam Limited (RVNL) is going to announce Q4 results today. However, ahead of Q4 results announcement, RVNL share price is witnessing strong buying interest among stock market bulls. RVNL share price today opened with an upside gap and went on to hit intraday high of ₹120.80 apiece levels on NSE logging over 4 per cent rise from its Friday close of ₹115.85 per share levels.
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According to stock market experts, market is expecting strong Q4 results from RVNL as it has strong order book and business flow to the company is expected to continue for next three to four years without any interruption. Hence, bulls are buying this LIC-backed multibagger stock ahead of the quarterly results announcement. They said that the multibagger railway stock is still looking positive on chart pattern and it may go up to ₹140 apiece levels in short term.
Speaking on the reason for RVNL share price rally, Saurabh Jain, Vice President — Research at SMC Global Securities said, “RBNL has strong order book and the business flow to the company is expected remain smooth for next three to four years. Hence, market is expecting strong Q4 results today and today’s rally in this railway stock has to be seen from this angle.”
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Expecting further upside in this multibagger stock, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, “After a spectacular move from ₹40 to ₹144 in the year 2022 to May 2023, we have seen some profit booking at the higher levels and retested its last breakout levels at ₹110 to ₹111 levels. Now it has witnessed a triangle formation pattern on the daily chart. The overall structure of the counter is lucrative; as it is trading above all the important moving averages (50, 100, and 200-DMA).”
Swastika Investmart expert further added that RVNL share price has a psychological resistance level of ₹128 to ₹130 apiece levels. If the price manages to break above the ₹130 resistance level with conviction, it suggests increased bullish momentum and the potential for further upside. In the near term, this could lead to a target price of ₹140 or even higher. On the downside, if there is a correction, the major support level is identified at ₹110.
RVNL share price history
As mentioned earlier, RVNL shares are one of the multibagger stocks that Indian stock market has produced in recent years. It has delivered to the tune of 75 per cent return in YTD time whereas in last one year, it has risen around 275 per cent. In last four years, RVNL share price has risen from ₹19.75 to ₹120.80 apiece levels, logging around 500 per cent rise in this time.
LIC stake in RVNL
According to shareholding pattern of RVNL for January to March 2023 quarter, LIC owns 13,29,43,000 RVNL shares or 6.38 per cent stake in the company.
