Shares of Rail Vikas Nigam Ltd. tumbled the most since Sept. 12 to the lowest in nearly four weeks on Friday after its consolidated profit fell 6% in the third quarter and missed analysts' estimates.
The railway company's net profit decreased to Rs 358.6 crore in the quarter ended December, according to an exchange filing on Thursday. Analysts polled by Bloomberg had projected a consensus estimate of Rs 385.6 crore.
Rail Vikas Nigam Q3 FY24 Highlights (Consolidated, YoY)
Revenue down 6.4% at Rs 4,689.3 crore. (Bloomberg estimate: Rs 5,405.8 crore).
Ebitda down 9.6% at Rs 249.1 crore. (Bloomberg estimate: Rs 335.20 crore).
Margin contracts to 5.3% vs 5.5% (Bloomberg estimate: 6.2%).
Net profit down 6.2% at Rs 358.6 crore. (Bloomberg estimate: Rs 385.6 crore).
On the NSE, RVNL's stock fell as much as 11.08% during the day to Rs 250.5 apiece, the lowest since Jan. 18. It was trading 10.24% lower at Rs 252.85 per share, compared to a 0.32% decline in the benchmark Nifty 50 at 11:10 a.m.
The total traded volume so far in the day stood at 1.1 times its 30-day average. The relative strength index was at 48.74.
One out of the three analysts tracking RVNL has a 'buy' rating on the stock and two suggest a 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 36.9%.
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