RVNL Shares Continue Bull Run, But This Analyst Wants You To 'Sell'

RVNL‘s share price continued making gains for the second straight session on Tuesday, going up over 4% to breach the ₹600 mark again.

What Happened: Shares of the company are upbeat today as the MSCI August review saw its inclusion in the India index. Investors are cheering the acquisition that could see inflows of over ₹1,800 crore.

However, analysts at Antique Broking are cautious about the stock as they resumed coverage with a “sell” rating for the stock with a price target of ₹283. The target indicates an around 50% downside from the stock’s current levels.

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The brokerage house said that the railway major posted a weak performance in the June quarter, with revenue declining by 27% year-on-year and profit after tax (PAT) down by 35% year on year. The analysts highlighted that the company attributed the poor results to one-off factors, expressing optimism that execution would improve from the September quarter onward, with expectations of closing FY25 with flat revenue compared to FY24.

Antique Broking acknowledged that RVNL had shown strong execution up until FY22, but annual revenue execution from FY23 to FY25 is expected to be largely flat. While the company has seen order wins and changes in the scope of its existing order book, the overall order book has remained largely unchanged over the past two years, the analyst said.

Price Action: RVNL’s share price was up 2.60% to trade at ₹590.80 in early trade on Tuesday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.