RVNL share price target: Railway PSU stock tanks 20%—here's what is keeping investors keen; should you buy?

RVNL share price today NSE, RVNL share price target: Shares of Rail Vikas Nigham (NSE: RVNL) were in focus on Tuesday, June 4, a day after railway PSU received an EPC order worth Rs 440 crore from South Central Railway for an Engineering, Procurement and Construction (EPC) tender. RVNL shares tanked 20 per cent amid broad-based weakness to the day's low of Rs 323.65 on NSE in morning deals, halting the two-day gains. The counter closed at Rs 351.3, down 13.16 per cent on NSE. 

RVNL's regulatory filing dated June 3, read, "This is in continuation to our letter no. RVNL/SECY/STEX/2024 dated 19.04.2024. In terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that Rail Vikas Nigam Limited has received Letter of Acceptance from South Central Railway for Engineering, Procurement and Construction (EPC) tender for proposed "Doubling of Track between Ankai station (Excluding) at KM 16.00 (Ch: 16000) & Karanjgaon stations (Excluding) at Km 69.01 (Ch:69010) (i.e. 53.01 Km) including Electrification and Signaling works in connection with Aurangabad-Ankai Doubling Project in Nanded Division of South Central Railway.”

Here are a few key details of the new order: 

Period by which the order is to be executed: 30 months

Broad consideration or size of the order: The project cost is Rs 440,00,86,784.36

Should you buy, sell or hold RVNL shares?

In conversation with Zee Business Managing Editor Anil Singhvi, market expert Vikas Sethi of Sethi Finmart recommended buying RVNL shares for a target of Rs 425 and a stop loss of Rs 395. 

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