RVNL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | RVNL | Market Cap | 51,598 Cr. | Current Price | 248 ₹ | High / Low | 406 ₹ |
| Stock P/E | 64.5 | Book Value | 42.5 ₹ | Dividend Yield | 0.69 % | ROCE | 11.0 % |
| ROE | 9.16 % | Face Value | 10.0 ₹ | DMA 50 | 264 ₹ | DMA 200 | 305 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | 0.05 % | PAT Qtr | 212 Cr. | PAT Prev Qtr | 264 Cr. |
| RSI | 46.6 | MACD | -9.81 | Volume | 1,85,73,159 | Avg Vol 1Wk | 99,49,969 |
| Low price | 222 ₹ | High price | 406 ₹ | PEG Ratio | -4.54 | Debt to equity | 0.54 |
| 52w Index | 14.1 % | Qtr Profit Var | -43.1 % | EPS | 3.84 ₹ | Industry PE | 17.4 |
📊 RVNL shows weak momentum with RSI at 46.6 and MACD negative (-9.81), indicating bearish sentiment. Fundamentals are modest with ROCE (11%) and ROE (9.16%), while P/E (64.5 vs industry 17.4) suggests overvaluation. Quarterly PAT dropped (212 Cr vs 264 Cr, -43.1%), highlighting earnings pressure. The stock trades below both 50 DMA (264 ₹) and 200 DMA (305 ₹), reinforcing bearish bias. Low debt-to-equity (0.54) is a positive, but overall risk remains high.
💡 Optimal Entry Price: Around 235–240 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 265–270 ₹ (short-term resistance) or trail stop-loss at 230 ₹ to limit downside risk.
🌟 Positive
- 📈 Low debt-to-equity ratio (0.54).
- 📊 DII holdings increased (+0.05%), showing domestic institutional support.
- 📉 Strong industry demand for railway infrastructure projects.
⚠️ Limitation
- 📌 High P/E (64.5) compared to industry average (17.4).
- 📌 Weak ROCE (11%) and ROE (9.16%).
- 📌 RSI and MACD indicate bearish momentum.
- 📌 FII holdings decreased (-0.11%), showing reduced foreign confidence.
📰 Company Negative News
- ⚠️ Sharp quarterly profit decline (-43.1%).
- ⚠️ Weak return ratios compared to peers.
📰 Company Positive News
- ✅ Low debt ensures financial stability.
- ✅ Domestic institutions increasing stake.
🏭 Industry
- Industry P/E at 17.4, highlighting RVNL’s premium valuation.
- Railway infrastructure sector benefits from government investment and expansion projects.
✅ Conclusion
RVNL is a weak swing trade candidate due to poor earnings, overvaluation, and bearish technicals, despite low debt and some institutional support. Entry near 235–240 ₹ offers tactical positioning, but exit near 265–270 ₹ is advisable if already holding. Risk management is critical given earnings volatility and weak fundamentals.
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