RVLN Share Price Hits Record Highs, With More Fuel Still In the Tank

Summary:
• Railway infrastructure developer RVLN share price has hit new all-time highs propelled by forecast-beating earnings report and mega contracts

RVLN share price soared to all-time highs of Rs 358.95 on Wednesday before easing by o.10 percent to close trading at 341.40. h  The latest rally is spurred by the company’s impressive earnings report released on Friday, May 17. As per the earnings report, RVLN generated revenues totaling 67.15 billion INR, beating the forecast estimate Rs 63.23 billion.

Despite closing marginally down on Wednesday, the momentum around the RVLN share price is strong and likely to propel further gains on Thursday, following recent mega deals. The state-owned railway infrastructure developer announced in its fillings on May 13 that it had won a Rs 2.39 billion from Southern Railway for provision of an automatic block signaling system.

A week later, in a filing with the NSE on May 21, the corporation revealed another mega deal-this time announcing that had bagged a contract worth 1.48 billion rupees from South Eastern Railways for the design, supply, erection, testing and commissioning for the upgrading of the electric traction system for the Kharagpur (Excl.)-Bhadrak (Excl.) section of the Kharagpur division of South Eastern Railway and meet the 3000 MT loading target.

As of this writing, the RVLN share price has gained 87.6 percent since the year started, underlining the attractiveness of its strong order book.  In addition, it has risen in each of the last two months, and is up by 19.2 percent in May, inclusive of Wednesday’s closing price. This momentum is likely to keep the share price on the growth path in the near term, barring aggressive profit-taking by investors.

Technical analysis

The momentum on the RVLN share price is likely to head to the upside if the buyers remain in control by keeping the action above 338.50 pivot price. That will likely result in a push past the first resistance at 350.25, and potentially further up to test 360.80 in extension. On the other hand, a move below 338.50 will likely shift the control to the sellers, with the first support likely to be at 323.25. An extension of control by the sellers will break the support and invalidate the upside narrative. Furthermore, it could result in a stronger downside momentum to test 306.85.