The share price of RVNL declined today, so let’s discuss that investment. Although RVNL is taking a break, the long-term picture still looks very positive.
RVNL Shares took a break during the day, falling 1.87 percent after rising for the past two days.
Again, is typical volatility in the market. Don’t freak out! Even after going up over 125% YTD, the stock still is a multibagger.
How comes it, the Dip?
The market sentiment may be unpredictable. It is quite common to book profits following a rally.
However, the fundamentals of RVNL remain strong. Of late, the company managed to win a ₹191.5 crore order from South Eastern Railway, which proves that its order book has considerable strength. Outlook for the Sector: Support at ₹394 and resistance at ₹440.
The stock is getting good support at ₹394 technically. Our study shows that there exists an imminent resistance at ₹440. The fact that the stock is trading close to or even above its major moving averages is a sign that positive momentum is developing.
Attractive valuations for investors with a long-term perspective The price-to-earnings ratio stands at 59.36 and the price-to-book ratio is 11.04 for RVNL. The company is very profitable with an EPS of 7.02 and ROE of 18.60.
Government support lends stability.
Government holding in RVNL is 72.84 per cent as of March 2024 that brings in stability, and in fact the strategic importance of the company to the government reflects through this holding. Hence, I feel there is an opportunity to buy dips. Do not get discouraged by swings in the short term.
RVNL has remained a dependable long-term bet as the country of India is witnessing massive infrastructure growth. Use the dips to get hold of this stock.
This is not investment advice. Do your very independent research before making any financial decisions.
RVNL shares experienced a recent dip. We analyze the factors behind the dip and whether it presents a buying opportunity for investors.
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