RailTel shares jump 7% on Rs 78 crore order win. Details here

RailTel Corporation of India Ltd shares rose sharply in Thursday's trading session after securing an order worth Rs 78 crore from Bharat Coking Coal Ltd. The stock surged 7.16 per cent to hit a day high of Rs 433.95.

The counter saw high trading volume on BSE as around 4.34 lakh shares changed hands today at the time of writing this story. The figure was higher than the two-week average volume of 1.25 lakh shares. Turnover on the stock came at Rs 18.51 crore, commanding a market capitalisation (m-cap) of Rs 13,801.96 crore.

"This is to inform that RailTel Corporation of India Ltd has received the work order from Bharat Coking Coal Ltd for Works amounting to Rs 78,43,30,164 (Including Tax)," the state-run firm stated in a BSE filing.

On technical setup, the scrip traded higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 100-day, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 58.50. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 53.06 against a price-to-book (P/B) value of 7.33. Earnings per share (EPS) stood at 8.13 with a return on equity (RoE) of 13.82.

During the September 2024 quarter, net profit rose 7 per cent to Rs 73 crore as against Rs 68 crore in the year-ago period. Revenue rose 41 per cent to Rs 843 crore in Q2 FY24 against Rs 599 crore in corresponding period last year.

Operating EBITDA climbed 2 per cent to Rs 129 crore in Q2 FY24 compared to Rs 126 crore in Q2 FY23. EBITDA margin in the September 2024 quarter came at 15.3 per cent against 21 per cent in the corresponding quarter a year ago.

RailTel Corp, a Mini Ratna (Category-1) PSU, is an information and communications technology (ICT) provider and one of the largest neutral telecom infrastructure providers in the country with a pan-India optic fiber network. As of September 2024, the government held a 72.84 per cent stake in the PSU.