Value Stock: This Low PE, High Dividend Yield Mid Cap stock has given a price volume breakout

The valuation is a key when it comes to identifying investment opportunities for long term. Attractive valuations are especially important when the bull run push majority of stocks higher, also pushing valuations to the unsustainable levels. 

Rail Vikas Nigam Limited, popularly known as RVNL is one stocks trading with attractive valuations that has caught investors attention on Tuesday after the stock gained by more than 7 per cent with a spurt in volumes. 

The PE for RVNL is 6.46, which is much lower than the industry average. The stock is up by more than 30 per cent on YTD basis while in one year the stock is up by more than 45 per cent. 

Interestingly the stock carries a dividend yield of more than 7 per cent at current price. The ROE is slightly above 16 and reflects management efficiency. 

The financial trend is positive for RVNL and the price momentum in near term is extremely positive. The shares of RVNL closed above the 30D SMA on September 3, indicating near term positive trend. 

RVNL shares were in limelight as the company has entered into a MoU with NHAI represented by National Highways Logistics Management Limited (NHLML), in connection with the Construction of Multi-Modal Logistics Parks across PAN India under Bharatmala Pariyojana. The role of RVNL will be for the design, planning, feasibility study, DPR, implementation and commissioning of the track connectivity work for MMLPs. Rail Vikas Nigam Limited is under the ownership of Indian Railways, Ministry of Railways, Government of India involved in building rail infrastructure required by the railways.