The broader railway sector also witnessed a rally following the government’s revised passenger train fares, which came into effect recently. This marks the second fare hike in 2025, aimed at maintaining a balance between passenger affordability and the financial sustainability of railway operations.
RVNL’s recent rise is largely driven by optimism ahead of the Union Budget 2026. In the past, railway stocks have often seen increased buying before the Budget, as investors expect higher spending on railway infrastructure, trains, and network upgrades.
Reports suggest that Budget 2026 may allocate a record Rs 1.3 trillion for rail safety, which could account for nearly half of Indian Railways’ capital expenditure. This move comes amid ongoing concerns over accidents and the slow implementation of safety systems, further fuelling investor confidence in railway stocks.
Also Read: RVNL, IRFC and other railway-linked stocks surge up to 10% as new railway fares kick in
Strong historical performance: Over the past three years, RVNL has seen a remarkable surge of nearly 500%, highlighting its strong long-term growth trajectory.
Valuation and technical outlook: The stock currently trades at a PE ratio of 63.48 and a PB ratio of 7.53, indicating relatively high valuations. From a technical perspective, RVNL shows a bullish trend, trading above all eight simple moving averages (SMAs), from the 5-day to the 200-day.
However, the 14-day Relative Strength Index (RSI) stands at 70.6, slightly above the overbought threshold of 70. This suggests that while the trend remains strong, a short-term pullback may occur.
With new fares in effect and Union Budget allocations expected soon, RVNL and other railway stocks are likely to remain in investor focus as 2026 begins.
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