Many investors these days are looking for a more diversified portfolio. Among the investment options available, buying shares in a railway infrastructure company such as Rail Vikas Nigam Limited (RVNL) is one of the popular choices. But what is RVNL share, what will be RVNL share price target in the coming years?, and should you buy it? In this blog post, we’ll take a deep dive into everything you need to know about RVNL share.
RVNL is a “Mini Ratna” public sector enterprise that was incorporated by the Ministry of Railways in 2003. The company operates as a project execution arm of the Indian Railways to undertake various railway infrastructure projects, including construction, up-gradation, and modernization of railway stations, tracks, electrification, and signaling systems.
Since RVNL is a public sector enterprise, its shares are listed on the stock market and open to the public for purchase. So, buying RVNL share allows investors to own a part of the company and share in its profits.
One of the key advantages of investing in RVNL share is the growth potential it offers. With the Indian Railways being a key player in India’s transportation sector, RVNL is well-positioned to benefit from the country’s infrastructure development plans, which are expected to drive demand for railway infrastructure projects.
Another advantage of investing in RVNL share is the company’s financial stability. RVNL has a strong balance sheet, and its revenue and profits have been consistently increasing in recent years. This means that RVNL is a reliable investment, making it a safer option for risk-averse investors.
However, like all investments, there are risks associated with buying RVNL share. One such risk is the dependence on government funding for its projects. As RVNL is a public sector enterprise, its operations are largely dependent on the government for funding. Any changes in government policies or strategies could have a significant impact on the company’s growth and profitability.
Another risk factor to consider is the competition in the sector. There are several other players in the railway infrastructure market, including private companies, which could lead to the erosion of RVNL’s market share in the long run.
Now, Let’s see technical analysis of RVNL share and predict the next target for RVNL share.
- Let’s look at monthly time frame chart of RVNL share, as you can see RVNL is trading at all time high!
- The buyers have reduced in the last 4-6 months, indicating a possible correction in the near future
- If you draw fibonacci on the latest impulse wave, we can predict that, RVNL share price may correct until 0.618 Fibonacci retracement level, which is Rs. 112
- So, Ideal entry will be around Rs.110-112.
- What will be the RVNL share price target? To answer this question, we can use fibonacci extensions as shown in the above figure. RVNL share price target will be 2.618 fibonacci extension level, which is Rs.290!
- Rs.290 will be the target for RVNL share price in the coming years.
In conclusion, RVNL share is a viable investment option for those seeking diversification in their portfolio, especially in the railway infrastructure sector. However, before investing in the company, investors should research the company’s financial history, growth prospects, and the overall market conditions. Additionally, RVNL’s dependence on government funds and competition from private players in the sector should be considered. With a well-informed decision, investing in RVNL share could offer significant returns to the investor in the long run. RVNL is an attractive investment option for long-term investors with a promising growth outlook. Though there are regulatory and execution risks, the company’s strong financials and dividend payouts, along with the government’s push towards infrastructure development, make it a worthwhile investment option.