Shares of RailTel Corporation of India surged over 7% on Friday after the company said it has received a work order worth Rs 52.66 crore from the Uttar Pradesh Police Recruitment and Promotion Board. The multibagger stock has risen 200 per cent in a year and gained 430 per cent in two years. The stock fell to a 52-week low of Rs 165.45 on August 25, 2023. RailTel Corp shares rose 7.47% to Rs 506 in early deals today against the previous close of Rs 470 on BSE. Market cap of the firm rose to Rs 16,011 crore. The stock was the top gainer on BSE. Total 4.06 lakh shares of the firm changed hands amounting to a turnover of Rs 20.24 crore.
The order includes live CCTV surveillance service, impersonation control through Aadhaar based biometric service, digital finger print and facial recognition during written examination and DV&PST.
ICICI Securities has maintained its sell call on the railway stock and revised its target price to Rs 315.
The brokerage has raised its EPS estimates by 3 per cent for FY25–26E on lower depreciation cost.
“RailTel Corporation (Railtel) Q1FY25 net profit grew 27 per cent YoY to Rs 48.7 crore which is within the company’s guidance of growth of 25–30 per cent. RailTel expects telecom revenue to grow 9–10 per cent while projects’ revenue is anticipated at Rs 2,000 crore driving total revenue growth of 25-30 per cent in FY25E,” said ICICI Securities adding that RailTel hopes for an acceleration in its order book driven by the large capex planned by Indian Railway.
In terms of technicals, the relative strength index (RSI) of RailTel stands at 46.8, signaling the stock is neither overbought nor oversold on charts. The stock has a one-year beta of 1.2, indicating high volatility during the period.
About the company
RailTel Corporation is a Mini Ratna (Category-I) PSU and is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network on exclusive right of way (ROW) along railway track. The company's segments include telecom services and project work services.