RVNL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | RVNL | Market Cap | 56,577 Cr. | Current Price | 271 ₹ | High / Low | 443 ₹ |
| Stock P/E | 58.8 | Book Value | 41.2 ₹ | Dividend Yield | 0.63 % | ROCE | 15.0 % |
| ROE | 14.4 % | Face Value | 10.0 ₹ | DMA 50 | 289 ₹ | DMA 200 | 318 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | 0.05 % | PAT Qtr | 264 Cr. | PAT Prev Qtr | 196 Cr. |
| RSI | 37.1 | MACD | -4.96 | Volume | 75,32,029 | Avg Vol 1Wk | 64,37,103 |
| Low price | 248 ₹ | High price | 443 ₹ | PEG Ratio | 19.6 | Debt to equity | 0.56 |
| 52w Index | 11.9 % | Qtr Profit Var | -10.4 % | EPS | 4.61 ₹ | Industry PE | 17.6 |
📈 Trend Analysis: RVNL is trading at ₹271, below both the 50 DMA (₹289) and 200 DMA (₹318), indicating short-term and medium-term weakness. The stock has corrected sharply from its 52-week high of ₹443 and is hovering near support levels.
📊 RSI: At 37.1, RSI suggests the stock is approaching oversold territory, which may limit further downside and hint at a potential rebound.
📉 MACD: Negative MACD (-4.96) confirms bearish momentum, aligning with weak price action below moving averages.
📌 Bollinger Bands: Price is near the lower band, signaling possible consolidation or a short-term bounce if support holds.
🔎 Volume Trends: Current volume (75,32,029) is higher than the 1-week average (64,37,103), showing active participation during the decline, which reflects selling pressure.
💡 Momentum Signals: Short-term momentum is weak. Optimal entry zone lies near ₹260–₹265 support levels. Exit/resistance zone is around ₹285–₹295, where selling pressure may emerge.
📌 Market Phase: The stock is consolidating with a bearish bias, attempting to stabilize near support after recent declines.
Positive
- 🚀 Quarterly PAT growth (₹264 Cr vs ₹196 Cr), showing operational improvement.
- 💰 Dividend yield of 0.63% provides income stability.
- 📈 ROCE (15%) and ROE (14.4%) indicate decent efficiency.
- 🔒 Debt-to-equity ratio of 0.56 ensures manageable leverage.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, signaling weakness.
- 📉 PEG ratio (19.6) reflects stretched growth valuation.
- 🔎 EPS of ₹4.61 is modest relative to valuation.
- 📊 High P/E ratio (58.8) compared to industry PE (17.6), suggesting premium valuation.
Company Negative News
- 📉 FII holdings decreased by 0.11%, showing reduced foreign investor interest.
- ⚠️ Quarterly profit variation of -10.4% highlights earnings inconsistency.
Company Positive News
- 📈 PAT growth sequentially highlights operational strength.
- 💡 EPS supports earnings visibility despite valuation concerns.
- 🌍 DII holdings increased by 0.05%, showing domestic institutional support.
Industry
- 🏭 Industry PE at 17.6, much lower than RVNL’s 58.8, highlighting premium valuation concerns.
- 📊 Sector growth driven by infrastructure and railway expansion projects.
Conclusion
⚖️ RVNL is consolidating with short-term weakness but supported by operational growth and manageable debt. Premium valuation and modest EPS limit upside potential. Strategy: consider entry near ₹260–₹265 support zones and book profits around ₹285–₹295 resistance. The stock is consolidating with cautious bias, awaiting stronger momentum for a sustained recovery.