PSU Stock RVNL Faces Bearish Pressure, Warns SEBI Market Analyst: Watch Out For This Key Level

Rail Vikas Nigam Limited is showing signs of further downside, according to SEBI-registered analyst Vikash Bagaria. Currently trading at ₹359.90, the stock has broken its long-term ascending trendline, signaling potential weakness.

Bagaria notes that RVNL is trading below its 20-day and 50-day moving averages, with support at ₹326.50 and ₹311. He highlights ₹321 as a critical level, saying a breakdown below this could accelerate the decline.

Additionally, the relative strength index (RSI) at 39.22 indicates weak momentum, approaching oversold territory.

Fundamentally, a combination of factors appears to be driving this weakness. 

The company's latest Q3FY25 results revealed a 13% year-over-year decline in net profit. This shortfall has understandably shaken market confidence.

While RVNL continues to win new contracts, market attention has turned to profitability. Investors are scrutinizing project margins, and any signs of weakness — such as with the BSNL contract —can prompt negative reactions.

Outstanding payments owed to RVNL, such as those from Krishnapatnam Railway Company Limited (KRCL), have also added to the uncertainty. 

Analyst sentiment remains cautious, with one out of two analysts rating it a 'Hold' and the other a 'Sell.' The average 12-month target price of ₹330 suggests a potential 9% downside from current levels, per InvestingPro.

RVNL is down 15% YTD.