RVNL’s shares surged 9.5% to Rs 379 on Friday, marking the fifth straight day of gains and a total five‑day rally of about 25%.
Why RVNL Is Jumping
Investors are betting on more government spending for rail projects, especially ahead of the upcoming Union Budget. The stock’s strong performance reflects this optimism.
New Train Fare Hike Boosts Railway Stocks
The government recently raised passenger‑train fares for the second time in 2025. The higher fares improve railway revenues, which in turn lifts the whole sector, including RVNL.
What the 2026 Budget Could Mean
Early reports suggest the 2026 budget may set aside roughly Rs 1.3 trillion for rail safety – almost half of Indian Railways’ total capital plan. More money for safety upgrades could drive further infrastructure work and benefit companies that build rail assets.
Technical Snapshot
- Price‑Earnings (PE) ratio: 63.48
- Price‑to‑Book (PB) ratio: 7.53 – both indicating relatively high valuations.
- Shares are trading above all eight simple moving averages (5‑day to 200‑day), showing a bullish trend.
- 14‑day Relative Strength Index (RSI) is 70.6, just above the typical overbought level, hinting at a possible short‑term pullback.
Takeaway for Investors
With the fare hike already in effect and the budget likely to pour money into rail safety, RVNL and other railway‑related stocks should stay in focus as 2026 begins. However, the high RSI suggests investors watch for a brief correction.
Remember, this is an overview, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.