RVNL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | RVNL | Market Cap | 62,061 Cr. | Current Price | 298 ₹ | High / Low | 448 ₹ |
| Stock P/E | 64.5 | Book Value | 41.2 ₹ | Dividend Yield | 0.58 % | ROCE | 15.0 % |
| ROE | 14.4 % | Face Value | 10.0 ₹ | DMA 50 | 293 ₹ | DMA 200 | 323 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | 0.05 % | PAT Qtr | 264 Cr. | PAT Prev Qtr | 196 Cr. |
| RSI | 54.8 | MACD | 6.84 | Volume | 61,26,484 | Avg Vol 1Wk | 65,28,325 |
| Low price | 248 ₹ | High price | 448 ₹ | PEG Ratio | 21.4 | Debt to equity | 0.56 |
| 52w Index | 24.8 % | Qtr Profit Var | -10.4 % | EPS | 4.61 ₹ | Industry PE | 18.5 |
Chart & Trend Analysis:
RVNL is trading at ₹298, slightly above its 50 DMA (₹293) but below the 200 DMA (₹323), showing short-term support but medium-term weakness. RSI at 54.8 indicates neutral momentum. MACD at 6.84 shows mild bullish crossover. Bollinger Bands place price near the mid-band, reflecting consolidation. Volume (61,26,484) is slightly below the 1-week average (65,28,325), suggesting reduced participation.
Momentum Signals:
- Short-term momentum is mildly bullish but capped by resistance near 200 DMA.
- Entry Zone: ₹290–₹295 (support near 50 DMA).
- Exit Zone: ₹315–₹320 (resistance near 200 DMA).
- Trend Status: Consolidating with upward bias; reversal not confirmed.
Positive
- Strong ROE (14.4%) and ROCE (15.0%) highlight efficiency.
- EPS of ₹4.61 supports valuation comfort.
- Low debt-to-equity ratio (0.56) ensures financial stability.
- DII inflows (+0.05%) show domestic institutional support.
- Quarterly PAT improvement (₹264 Cr vs ₹196 Cr).
Limitation
- P/E (64.5) is significantly above industry average (18.5), indicating steep premium valuation.
- Dividend yield at 0.58% offers limited income appeal.
- Quarterly profit variation (-10.4%) raises concerns about earnings sustainability.
- PEG ratio of 21.4 suggests growth is overpriced.
Company Negative News
- Premium valuation may limit upside potential.
- FII holdings declined (-0.11%), showing reduced foreign confidence.
- Quarterly profit decline highlights earnings pressure.
Company Positive News
- Strong operational efficiency with ROE and ROCE.
- Price trading above 50 DMA confirms short-term bullish bias.
- Improved PAT supports near-term fundamentals.
Industry
- Industry P/E at 18.5 highlights RVNL’s steep premium valuation.
- Sector supported by government-backed infrastructure and railway expansion projects.
Conclusion
RVNL shows moderate technical momentum with support near ₹290–₹295 and resistance around ₹315–₹320. While fundamentals are supported by efficiency and institutional inflows, steep valuations and profit decline warrant caution. Tactical entries near support with exits around resistance provide a balanced swing trade setup, while long-term investors should monitor earnings growth for sustained momentum.