RVNL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.5

📈 Positive

• 📘 ROCE of 15.0% and ROE of 14.4% reflect decent capital efficiency.
• 💰 Dividend yield of 0.53% adds modest passive income.
• 📉 Debt-to-equity ratio of 0.63 is manageable for an infrastructure company.
• 📈 EPS of ₹5.27 and consistent profitability support long-term stability.
• 📉 Price is near recent support zone (₹295), offering a potential bounce setup.

⚠️ Limitation

• 📉 RSI at 38.0 and MACD at -3.87 indicate weak momentum and bearish bias.
• 📉 Price is below both DMA 50 (₹340) and DMA 200 (₹365), confirming technical weakness.
• 📉 Volume (23 lakh) is below 1-week average (29 lakh), showing reduced participation.
• 📉 P/E of 61.8 vs industry P/E of 22.2 signals overvaluation.
• 📉 PEG ratio of 20.5 suggests expensive valuation relative to growth.
• 📉 PAT dropped sharply from ₹373 Cr. to ₹128 Cr., a 41.3% decline QoQ.
• 📉 FII holding declined by 0.23%, indicating cautious foreign sentiment.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over execution delays and margin compression in recent quarters.

✅ Company Positive News

• 🚆 RVNL continues to benefit from government infrastructure push and railway modernization projects.
• 📈 Strong order book and long-term contracts support revenue visibility.

🏦 Industry

• 🏗️ Operates in the infrastructure and railway development sector, which is cyclical but supported by public investment and policy tailwinds.
• 📊 Industry P/E of 22.2 reflects moderate growth expectations and valuation norms.

🧾 Conclusion

• 📉 RVNL is fundamentally stable but currently facing technical weakness and valuation concerns, making it a cautious swing trade candidate.
• 📍 Optimal entry: ₹310–₹315 (near support and below DMA 50).
• 🚪 Exit if held: ₹345–₹355 (near DMA 50 and resistance zone) unless momentum improves.
• ⚠️ Suitable for swing trading with tight stop-loss and close monitoring of trend reversal signals and earnings updates.

I can also compare RVNL’s swing setup with IRCON or RITES to help you identify stronger technical setups.