Why is that this railway inventory costly even after falling 44%? Could make a file of 5 consecutive months of decline – INA NEWS

RVNL Share Worth: Shares of Rail Vikas Nigam Restricted fell greater than 8% in early commerce at present, January 13. The shares of this firm owned by the Authorities of India have been falling constantly for the final 3 days. The continuing promoting in midcap and smallcap segments is having a major affect on this inventory. With at present’s fall, RVNL shares are actually down about 45 p.c from their all-time excessive of Rs 647. RVNL shares had touched this degree in August final yr.

Within the month of January alone, RVNL shares have fallen by about 14 p.c. If this pattern continues, it will likely be the fifth consecutive month when the inventory will give detrimental returns. The returns of this inventory had been detrimental within the final 4 months of the yr 2024. Other than this, this would be the first time for the reason that itemizing of RVNL that the share has given detrimental returns for five consecutive months.

If we discuss concerning the technical chart of the inventory, the inventory is within the ‘oversold’ zone and its Relative Power Index (RSI) is 20. If a inventory’s RSI is under 30, it’s thought-about an indication that it’s within the ‘oversold’ zone.

Nonetheless, regardless of such a decline and the inventory being within the oversold zone, RVNL shares are nonetheless buying and selling above its historic common a number of. RVNL shares are presently buying and selling at 42.77 occasions FY26 price-to-earnings a number of. On the similar time, its 5-year common price-to-earnings a number of is just 12 occasions.

RVNL is but to launch its December quarter shareholding sample. In accordance with the info until September quarter, the Authorities of India has about 72 p.c stake on this firm. At the moment solely 3 analysts are masking this inventory. Of those, one analyst has suggested to purchase, one to promote and one to carry.

Round 2 pm, RVNL shares had been buying and selling at Rs 360.40, down 8.37 per cent on the NSE. Its value has fallen by about 23 p.c within the final one month.

Additionally read- This inventory might fall 25%! There’s a rush to promote, the worth fell by 7%, overseas brokerage agency lowered the score

Disclaimer: The views and funding recommendation given by specialists/brokerage companies on Moneycontrol are their very own and never these of the web site and its administration. Moneycontrol advises customers to seek the advice of licensed specialists earlier than taking any funding resolution.