RailTel: Railway's MiniRatna Stock Hits New 52-Week High On Winning New Order Worth Rs 163 Crore

Miniratna company backed by Railways, RailTel Corporation of India traded bullish on January 25 so much so that the stock price touched yet another fresh 52-week high. Railway stocks have been unstoppable with sharp rallies and triple-digit returns in the short term. The sparks of bulls in RailTel this time were due to a huge order win to the tune of Rs 163 crore.

On BSE, RailTel shares ended at Rs 437.25 apiece after market hours on January 25. In the trading hours, the stock price touched a new 52-week high of Rs 459.30 apiece.

In six months, RailTel has emerged as a multi-bagger with upside of nearly 162%. In a year, RailTel is up by 264% on BSE.

The company in its regulatory filing announced that it has received the work order from Navodaya Vidyalaya
Samiti for Supply & Implementation of Integrated Infrastructure & IT solutions under PM SHRI Scheme in JNVs Schools amounting to Rs. 162.73 crore.

The period for executing the order is 180 days from the date of issue of signing of the agreement.

Also, the stock is in focus due to its Q3 results for FY24 which were delivered on January 24.

In the third quarter of FY24, the company posted a net profit of Rs 62.67 crore, as against Rs 31.85 crore in Q3 of FY23. In Q2FY24, the PAT was at Rs 68.68 crore.

Meanwhile, revenue from operations stood at Rs 668.36 crore in Q3FY24 as against Rs 454.32 crore in Q3FY23, and Rs 599.15 crore in Q2FY24.

RailTel, a "Mini Ratna (Category-I)" Central Public Sector Enterprise is an ICT provider and one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fibre network. The OFC network covers important towns & cities of the country and several rural areas.

RailTel was incorporated on September 26, 2000, to modernize the existing telecom system for train control, operation, and safety and generating additional revenues by creating a nationwide broadband and multimedia network, laying optical fiber cable using the right of way along railway tracks. Presently, the optic fiber network of RailTel covers over 61000+ route kilometers and covers 6108+ railway stations across India. Its citywide access across the country is 21000+ kms.

RailTel believes that their experience and expertise in handling and undertaking telecom and ICT projects, has led them to be selected for implementation of various mission-mode projects for the Government of India including rolling out the National Knowledge Network, Bharat Net (formerly, the National Optical Fiber Network) and USOF funded optical fiber based connectivity project in North East India.