RVNL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | RVNL | Market Cap | 68,116 Cr. | Current Price | 327 ₹ | High / Low | 448 ₹ |
| Stock P/E | 68.6 | Book Value | 41.2 ₹ | Dividend Yield | 0.53 % | ROCE | 15.0 % |
| ROE | 14.4 % | Face Value | 10.0 ₹ | DMA 50 | 334 ₹ | DMA 200 | 350 ₹ |
| Chg in FII Hold | 0.31 % | Chg in DII Hold | -0.02 % | PAT Qtr | 196 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 45.4 | MACD | -0.93 | Volume | 3,79,41,773 | Avg Vol 1Wk | 2,05,72,536 |
| Low price | 295 ₹ | High price | 448 ₹ | PEG Ratio | 22.8 | Debt to equity | 0.56 |
| 52w Index | 20.5 % | Qtr Profit Var | -35.2 % | EPS | 4.76 ₹ | Industry PE | 16.9 |
📊 Chart & Trend Analysis: RVNL is trading at 327 ₹, below both its 50 DMA (334 ₹) and 200 DMA (350 ₹), indicating short-term and medium-term weakness. RSI at 45.4 suggests neutral momentum, while MACD at -0.93 confirms mild bearish bias. Bollinger Bands show price hovering near the mid-lower band, signaling consolidation with downside risk but potential rebound if support holds near 320 ₹.
📈 Momentum Signals: Current volume (3.79 Cr.) is significantly higher than the 1-week average (2.05 Cr.), reflecting strong participation despite weak momentum. RSI near neutral levels suggests balanced momentum. Sustained price action above 334–350 ₹ could trigger a breakout towards 370–400 ₹.
🎯 Entry Zone: 315–325 ₹ (near support and neutral RSI)
🚪 Exit Zone: 360–380 ₹ (resistance near 200 DMA and upper trendline)
📌 Trend Status: Consolidating with bearish bias. A reversal is possible if price sustains above 350 ₹ with volume confirmation.
Positive
- Strong ROCE at 15% and ROE at 14.4% indicate efficient capital use.
- Low debt-to-equity ratio of 0.56 shows financial stability.
- FII holdings increased (+0.31%), showing foreign investor confidence.
- Strong market cap of 68,116 Cr. reflects industry leadership.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 68.6 compared to industry PE of 16.9, making valuation expensive.
- PEG ratio of 22.8 suggests overvaluation relative to growth.
Company Negative News
- Quarterly profit variation of -35.2% indicates declining earnings momentum.
- DII holdings reduced (-0.02%), showing domestic investor caution.
Company Positive News
- PAT improved sequentially to 196 Cr. from 128 Cr., showing operational recovery.
- EPS of 4.76 ₹ reflects profitability despite valuation concerns.
Industry
- Industry PE at 16.9 is much lower than RVNL’s 68.6, suggesting sector peers are more reasonably valued.
- Railway infrastructure sector benefits from government-backed projects and long-term demand.
Conclusion
⚖️ RVNL is consolidating with bearish bias, trading below key moving averages but supported by strong fundamentals like ROCE, ROE, and low debt. Entry near 315–325 ₹ offers tactical opportunity, while exits around 360–380 ₹ align with resistance. Despite sequential PAT growth, expensive valuation and weak technicals warrant cautious positioning until a breakout above 350 ₹ confirms reversal.