Dividends 2024: Analysts See 3 Multibagger Railway PSUs Rising, Buy Recommended For Gain

Leading analysts have given buy call to 3 railways public sector undertakings for attractive return. These three railway stocks are Rail Vikas Nigam, RITES, and IRFC. RVNL, RITES, and IRFC shares offered multibagger returns to shareholders in last 1-year only. RVNL and IRFC have already declared dividends and RITES will hold meeting of Board on May 28 to consider results and recommend dividend, if any. More details below:

1. Buy RVNL Share: Rail Vikas Nigam Ltd shares have been witnessing sharp rally in last few days after it declared healthy quarterly earnings and latest order wins. Last trading price of Rail Vikas Nigam share on BSE is Rs 370.35 per share. Rail Vikas Nigam share offered return of 103% year-to-date and offered massive returns of 1077% in last 2-years only.

RVNL on May 17, 2024 announced a jump of 33.2% year-on-year (YoY) in its net profit to Rs 478.6 crore for Q4 ended March 31, 2024 as against the net profit of Rs 359 crore in the corresponding quarter of last year. RVNL also recommended an final dividend of Rs 2.11 per share for FY 2023-24.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a decent spurt from the bottom made near Rs 250 level. It has gained strength to breach above its previous peak level of Rs 345 on intraday basis and would need a decisive close above this Rs 345 zone to confirm a breakout. Currently, with near-term support maintained at around Rs 338 level and strength indicated, next higher targets visible are Rs 370 and Rs 395 in the coming days."

2. Buy RITES Share: Mid cap Navratna public sector undertaking, RITES share declined 2.11% as on May 24 to settle at Rs 733.95 per share. RITES shares offered 14% return in last 2-weeks, jumped 96% in last 1-year, and gave attractive return of 189% in last 2-years. Board of Directors of RITES will hold meeting on May 28, 2024 to consider financial results and recommend final dividend.

Mehul Kothari of Anand Rathi Shares and Stock Brokers has recommended buy call to RITES share with target price price of Rs 920 per share and maintain stop loss at Rs 620 per share. The analyst said that the railway PSU has been performing well and there may be further increase in its performance after Lok Sabha elections. The analyst suggested to buy RITES share for a target period of 9 to 12 months.

3. Buy IRFC Shares: Last trading price of Indian Railway Finance Corporation Ltd share on BSE is Rs 184.05 per share. Indian Railway Finance Corporation shares offered return of 141% in last 6-months and eye-popping returns of 443% in last 1-year. IRFC shares gave return of 754% in last 2-years.

IRFC on May 20 declared a surge of 34% rise in its profit to Rs 1,717.3 crore for the March 2024 quarter amid higher income as against the profit of Rs 1285.2 crore for the Q4 of last fiscal. Board of IRFC approved a final dividend of Re 70 paise per share for the FY 2023-24.

"The current price action suggests upward momentum, particularly above Rs 178 levels, with anticipated targets near Rs 190 and Rs 205. Notably, the stock has given a breakout of a symmetrical triangle pattern, indicating a potential continuation of the upward trajectory. Furthermore, the Relative Strength Index (RSI) at 70.10 levels underscores the underlying strength of the stock, aligning with the bullish sentiment," said Deven Mehata, Research Analyst at Choice Broking.

Disclaimer: The stocks have been picked from the brokerage report of Choice Broking, Anand Rathi, and Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.