Railway stocks have managed to deliver returns to investors at a blistering pace over the past one year. There has been a pause in this rise in the last few trading sessions. Today again that pause seems to be lifted. Today Railway Stock IRDA shares have gained 8 per cent. It is seen trading at 258, up 20 points. Rail Vikas Nigam Limited (RVNL) shares are down 12 per cent from their 52-week high of Rs 647 but are up 213 per cent so far in 2024 and 358 per cent in the last one month. Brokerage Stockbox believes that the recent fall in the stock is over and there is a possibility of a correction in the stock.
What do the experts say?
Stoxbox said RVNL shares have seen a spectacular rise, their value has more than doubled since hitting the low in May 2024, before which a period of mild profit-booking was also observed. It is noteworthy that the decline has been limited to 20 percent, and the possible formation of the ABCD harmonic pattern indicates the possibility of a short-term correction in the stock.
Stoxbox said RVNL’s price action on August 12 also points to early signs of dormant buyers gradually becoming active and sellers gaining strength, which is a positive sign. On Thursday, RVNL shares were trading 1.3 per cent higher at Rs 571.10 on the BSE. Stockbox said RVNL shares can be bought for a short target of Rs 626 with a stop loss of Rs 538.
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The company expanded its
Let us tell you that RVNL has expanded its global presence with a new subsidiary in Uzbekistan and a strategic MoU with Israel. In the June quarter RVNL established a subsidiary in Uzbekistan, Rail Vikas Nigam LLC. In addition, it has entered into a partnership with Israel’s United Construction Ltd. to collaborate on projects in various sectors in Israel including railways, MRTS, tunnels, highways and motorways, bridges, construction sites, airports, ports, irrigation and power transmission and distribution. a Memorandum of Understanding (MoU).
Why did this stock go up?
In a regulatory filing with the BSE, IREDA has informed under the SEBI Disclosure Regulations that the meeting of the Board of Directors of Indian Renewable Energy Development Agency Limited will be held on August 29, 2024. In this meeting, raising of Rs 4,500 crore through issue of shares will be discussed and approved in the board meeting. The company said that this fund will be raised in one or more phases through FPO, QIP rights issue, preferential issue or other methods for which statutory and government approval will be required. IREDA shares have fallen about 23% from the all-time high but brokerage firm ICICI Securities has given it a buy rating at a target price of Rs 330.
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