This Mini Ratna Railway Stock Is Less Than Rs 25 Away From Hitting New High; Big Deal Wins Give Boost!

Railways Ministry-backed Mini Ratna (Category-I) CPSE, RailTel Corporation is also among the multi-bagger returns by railway stocks in 2023. Currently, the stock has witnessed substantial buying and is less than Rs 25 away from hitting a new 52-week high. The stock trades below Rs 300, and its key verticals are broadly positive. The latest upside can be attributed to huge deal wins.

On BSE, Railtel stock ended at Rs 296.45 apiece, up by 1.8% with an m-cap of Rs 9,514.22 crore. The current market price is just Rs 24.3 away from hitting its new 52-week high of Rs 320.75 apiece.

Nevertheless, the stock is up by a whopping more than 208% from its 52-week low of Rs 96.20 apiece. Also, year-to-date, the stock has zoomed by 133%.

This week, Railtel stock ended in green and has been on a winning streak since December 21, after it won an order worth Rs 66.83 crore for the Supply, Installation, Testing and commissioning of Integrated Tunnel Communication system, Emergency
Call Arrangements in Tunnels & IPIS at Stations in Bhairabi- Sairang New Single line Section of Lumding Division. The new order was received from N F Railway Construction.

Earlier, in December, the company bagged an order of 25.30 crore from the Directorate of Geology and Mining, Government of Madhya Pradesh for the Implementation of an AI-based Smart Enforcement System to curb illegal transportation of minerals with 3 years of operation and maintenance.

Together in December so far, the stock grabbed up to Rs 92.13 crore worth of new orders.

As per Trendlyne data, the EPS of Railtel is expected to grow by 32.8% in FY24. Here are the key verticles for the stock price of Railtel ahead.

- Railtel stock outperformed its sector by 114.18% in the past year.

The debt to Equity Ratio is zero as the company is debt-free.

- Mutual Fund Holding increased by 1.56% in the last quarter to 2.68.

- Interest Coverage Ratio is 141.52, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Promoter Pledges are zero.

- Promoter Share Holding stayed the same in the most recent quarter at 72.84%.

- Return on Equity(ROE) for the last financial year was 11.45%, in the normal range of 10% to 20%.

- Price to Earning Ratio is 44.71, lower than its sector PE ratio of 67.

RailTel has a strategic relationship with the Indian Railways and it undertakes a wide variety of projects including provision of mission critical connectivity services like IP based video surveillance system at stations, 'e-Office' services and implementing short haul connectivity between stations and long haul connectivity to support various organizations within the Indian Railways. RailTel also provide various passenger services including content on demand services and Wi-Fi across major railway stations in India.

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