RVNL shares plunge 9% on profit-booking after Q3 PAT drops

Shares of Rail Vikas Nigam Limited (RVNL) fell over 9% after the railway infrastructure company reported a 4% decline in its standalone net profit for the quarter ended December 2023. The state-run company reported a net profit of Rs 326 crore in Q3FY23 versus Rs 341 crore in Q3FY23.

The net profit was also lower on a sequential basis versus Rs 370 crore reported by RVNL in Q2FY24.

The revenue from operations for the reporting quarter was also lower by 6% at Rs 4,676 crore, down from Rs 5,011 crore reported by RVNL in the corresponding quarter of the last financial year. On a quarter-on-quarter (QoQ) basis, the revenue was down by 5% over Rs 4,910 crore reported in the July-September quarter.

The company managed to incur lower expenses in the reporting quarter at Rs 4,573 crore versus Rs 4,752 crore in Q2FY24 and Rs 4,889 crore in Q3FY23.

The stock has been a multibagger, giving nearly 260% returns over the past year. This is a significant outperformance over Nifty which has delivered a 23% income on investments during this time.

Notwithstanding Friday's decline, the stock is still trading above its 50-day and 20-day simple moving averages (SMAs).

The stock is off its 52-week high of Rs 345 on the NSE, which it hit on January 23, 2024.

Today's price action was amid strong volumes as more than 1.65 crore shares changed hands on the NSE at 10:40 am. The traded value of the share stood at Rs 435.50 crore.

Momentum indicators, RSI, and MFI are hovering near 61 and 52 according to Trendlyne data. A number above 70 is considered to be overbought, while below 30 is seen to be oversold.
The Miniratna company, which started its operations in 2005 boasts of the Vallarpadam–Idapally bridge which is India's longest rail bridge according to the company's claims.

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