Shares of RailTel Corporation of India Ltd have risen 176% in the last six months, delivering multibagger returns for investors in the short term. The railway stock was trading close to its record high in the afternoon session today. RailTel shares rose to a high of Rs 363.80 against the previous close of Rs 352.90 on BSE. Market cap of the firm climbed to Rs 11,505 crore. Total 3.99 lakh shares of the firm changed hands amounting to a turnover of Rs 14.17 crore.
In the previous session, the stock hit its all-time high of Rs 371.40 on BSE. The multibagger stock has risen 181 per cent in a year. It hit a 52-week low of Rs 96.20 on March 28, 2023.
Deven Mehata, Equity Research Analyst,Choice Broking said, "RailTel has exhibited robust bullish momentum with a compelling breakout above the Rs 320 levels. The breakout is substantiated by robust volumes, affirming the stock's underlying strength. Notably, RailTel is trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Averages (EMA), underscoring the sustained upward trend. The momentum indicator, Relative Strength Index (RSI), has surged to 76 levels, signifying strong positive momentum. The stock boasts of a substantial support zone within the range of Rs 300-320 levels, closely aligning with its 20 Day EMA. This support zone not only provides a safety net but also aligns with the psychological support of the round figure of Rs 300.
For investors seeking a long-term position, any retracement or dip in the stock becomes a favourable buying opportunity. Investors who entered at lower levels can consider booking partial profits, while the remainder should be safeguarded by trailing the stop loss to around Rs 320 levels. This strategy ensures prudent risk management while allowing potential capitalization on the upward trajectory in the long term"
Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock gained further, after the breakout indicated above Rs 320 zone, with another strong bullish candle pattern on the daily chart almost to reach the next target of Rs 375 levels with strong volume participation witnessed and can continue with the upward move in the coming days. The RSI indicator has once again attained the highly overbought zone and so some cooling off cannot be ruled out if it finds resistance near Rs 375 zone, with the near term support would be near Rs 348 levels. With the overall bias maintained strong, a decisive breach above Rs 375 level shall open the gate for next higher targets of Rs 388 and Rs 420 levels."
Abhijet from Tips2trades said, "Railtel is bullish and overbought on the daily charts with next resistance at Rs 428. Investors should book profits at current levels as a daily close below the support of Rs 347 could lead to Rs 297 in the near term."
In terms of technicals, the relative strength index (RSI) of RailTel stands at 75.3, signaling the stock is trading in overbought zone. The stock has a one-year beta of 0.2, indicating very low volatility during the period. RailTel stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
RailTel reported a 23.4% growth in net profit to Rs 68.15 crore. It clocked a revenue growth of 40 percent at Rs 599.2 crore.
Net sales climbed 40.94 percent at Rs 599.15 crore. Earnings before interest, taxes, depreciation and amortisation stood at Rs 128.94 crore, up 15.96 percent from Rs. 111.19 crore in the last fiscal.
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.
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