Shares of state-run Rail Vikas Nigam Ltd. (RVNL) declined as much as 2% to hit a day’s low of ₹566 during Friday’s trading session. The stock has corrected 12% from its record high levels of ₹647, which it had hit on July 15, 2024.

Technical analyst Sarvendra Srivastava recommended investors to definitely try to book profits when it bounces back because they will have the opportunity to buy at lower levels.

Answering a viewer query on CNBC Awaaz, the analyst said, “It’s extremely overbought and has been highly favored by the market. When corrections happen in such stocks, they often experience a sideways to downward phase for three to six months.”

Antique Broking in a recent note had assigned a ‘Sell’ recommendation to the stock with a price target of ₹283 per share. The brokerage said it finds the stock overvalued and that a lot of opportunities are in the planning stage.

“The stock trades at an expensive valuation of 66 times/ 59 times at its FY26E/27 EPS. We have a sell rating and a SoTP-based target price of ₹283. Risks to our rating are execution uptick and order wins. We have modelled in an inflow of ₹25,000 crore per annum over FY25-27E,” the brokerage noted.

In terms of technicals, the stock’s relative strength index (RSI) stood at 53.1, indicating it’s trading neither in the overbought nor in the oversold zone. RVNL shares have a one-year beta of 1.3, indicating very high volatility during the same period.

Rail Vikas Nigam shares are trading higher than the 50 day, 100 day, 150 day and 200 day moving averages but lower than 5 day, 10 day, 20 day, and 30 day moving averages.

Shares of Rail Vikas Nigam Ltd. are currently trading 2.25% lower at ₹568.75 apiece on the NSE. The Navratna PSUs shares have risen 214% so far this year, while over a 12-month period, the stock has climbed 280%.