This railway stock is down 44% from its peak but valuation remains expensive

Shares of Rail Vikas Nigam Ltd., the state-run railway and construction company fell another 8% on Monday, in-line with the continuing pain in the midcap and smallcap space. This is the third straight day of losses for the railway PSU.

With Monday’s fall, RVNL shares are now down 44% from their peak of ₹647, which they had hit in August last year.

RVNL shares are down 13% in the month of January itself. This will be the fifth straight monthly drop for the stock, having declined during the last four months of 2024 as well.

This will also be the first instance since RVNL’s listing that the stock would have declined for five months in a row.
On the charts, the stock is in the “oversold” territory, with its Relative Strength Index (RSI) at 25. An RSI below 30 indicates that the stock is in “oversold” territory.

Despite the significant correction that shares of RVNL have seen from their peak, the stock still remains well above its historical multiples.

Shares of RVNL are currently trading at 42.77 times financial year 2026 price-to-earnings multiple, while its five-year average price-to-earnings multiple is only 12 times.

RVNL is yet to disclose its shareholding pattern for the December quarter. As of the September quarter, the government still had over 72% stake in the company.

The railway PSU does not have significant analyst coverage with only three analysts tracking the stock. The three of them are divided between “buy”, “hold” and “sell” respectively.

Shares of RVNL ended 8.2% lower at ₹361.4. Over the last one month, the stock has corrected 22%.