Why Navratna CPSE RVNL Shares Are Falling? Buy Or Sell?

Navratna CPSE Rail Vikas Nigam Ltd shares witnessed decline of 4.83% on February 17, 2025 on Bombay Stock Exchange (BSE) and saw steel fall of over 39% in last 6-months. The state -owned firm on Feb 14, 2025 recorded a 13.1% year-on-year (YoY) decline in its net profit to Rs 311.6 crore for the quarter ended December 31, 2024 as against the net profit of Rs 358.6 crore reported in the corresponding quarter of last year. Current market price RVNL shares on BSE stood at Rs 342.40 per share. The stock declined 47.05% from its 52-week high price of Rs 647.00 per share if its current market price is taken into consideration. It is worth noting that PSU insurer Life Insurance Corporation of India (LIC) has 5.81% stake in RVNL. The company’s market capitalisation stood at Rs 71,432.79 crore while the return on equity stood at 15.71%. Check more details below:

Rail Vikas Nigam Ltd Shares Slump After Declaring Subdued Earnings

The shares of RVNL witnessed sharp decline after the company declared its quarterly earnings that came below the street estimates. Shares of the PSU witnessed corrections of 15.87% in last 2-weeks only and tumbled 19.67% in last 1-month span. The railway company’s revenue from operations slipped 3% YoY to Rs 4567 crore for Q3FY25 as against Rs 4689 crore declared in Q3FY25. The PSU’s total expenses surged to Rs 4480 crore for Q3FY25 from Rs 4584 in Q3FY24. Meanwhile, the earnings per shar declined to Rs 1.49 for the quarter under review from Rs 1.72 cr in the similar quarter an year ago.

Why Navratna CPSE RVNL Shares Are Falling? Should You Buy Or Sell?

Rail Vikas Nigam Ltd Comments On Fine Levied By Exchange

According to the exchange filing of the company dated Feb 17, “this is with reference to your email dated 21 st November, 2024 on the captioned subject, levying fine on the Company for Non-Compliance with the requirements pertaining to the composition of the Board including failure to appoint Woman Director, listing regulation 17 (1) of SEBI (LODR) Regulations, 2015 for the quarter ended 30th September, 2024.”

The same was placed before the Board of Directors of the company in its meeting, wherein Board observed that – “Company is continuously following up with the Ministry of Railways about the vacancy of Independent Directors (including one-woman independent Director) on the Board of RVNL. Several reminder letters have been sent by RVNL requesting MoR to take immediate action with respect to appointment of Independent Directors (including one-woman Independent Director) and being a Govt. Company, Company has no role to play in the appointment of Directors. ”

Rail Vikas Nigam Ltd Shares Performance

The 52-week high price of RVNL stock on BSE is Rs 647.00 per share (as on 15/07/2024) and 52-week low price is Rs 213.00 per share (as on 14/03/2024), respectively. The Navratna PSU shares surged over 36% in last 1-year, rallied over 400% in last 2-years, and logged gains of 931.9% in last 3-years. In last 5-years, the psu stock witnessed maximum jump as shares delivered returns of 1429.46%.

Why RVNL Shares Are Falling?

RVNL shares have been falling due to several factors. The railway stock has been declining after its net profit for the recent quarter witnessed decline. Other factors include lower projects executions, slower growth in the firm’s core segment, and recent budgetary allocations. Several leading railway stocks witnessed sharp decline after Finance Minister avoided mentioning any major announcement for the sector in the recent and last year’s budget. Analysts were anticipating a hike of up to 20% in budgetary allocation from the FM. Earlier in 2024 during the interim budget, FM Sitharaman chose to refrain from making any allocation for railway sector and that triggered a major fall in the stocks.

Should You Buy RVNL Shares?

According to A R Ramachandran, SEBI registered Independent research analyst, “RVNL stock price is bearish on the Daily charts with strong resistance at 382. A Daily close below support of 332 could lead to a target of 297 in the near term.”

RVNL Dividend History

The PSU declared a total of 9 dividends since September 6, 2019 and in last 1-year it announced an equity dividend amounting to Rs 2.11 per share. It maintains a dividend yield of 0.62%, according to Trendlyne.

RVNL Bonus Share History

The company never recommended any bonus share since January 1, 2000. It did not conduct any stock split as well so far.

Disclaimer: The stock has been picked from the brokerage report of A R Ramachandran. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.