Rs 4,682 crore order book: This railway telecom company bags new order worth Rs 70,93,58,570 from Eastern Railway
The stock gave multibagger returns of 165 per cent in just 1 year whereas BSE Sensex Index was up by 26 per cent in the same period.
On Wednesday, shares of RailTel Corporation of India Ltd (RCIL) gained 0.51 per cent to Rs 502.20 per share from its previous closing of Rs 499.65 with an intraday high of Rs 516.50 and an intraday low of Rs 499.65. The stock’s 52-week high is Rs 618 and its 52-week low of Rs 189.25.
Eastern Railway has awarded RailTel Corporation of India Ltd. a contract worth Rs 70,93,58,570 to implement a unified communication infrastructure. This infrastructure will include LAN infrastructure, IP exchange, VoIP-based control communication, and an IP-MPLS-based network across Eastern Railway. The contract is domestic in nature and is expected to be executed by November 25, 2025.
Earlier, the company received an order worth Rs 52,66,30,075 contract from the Uttar Pradesh Police Recruitment & Promotion Board to provide live CCTV surveillance, Aadhaar-based biometric impersonation control, and digital fingerprint and facial recognition during written examinations and document verification/physical standard tests. The contract is domestic, and the execution period is until August 31, 2024.
Established in 2000, RailTel Corporation of India Ltd (RCIL) is a "Miniratna" public sector enterprise under the Indian government, offering various telecom services including broadband, VPN, and data centres. With its extensive network covering over 6,000 stations and 61,000+ km of fibre optic cables, RailTel reaches 70 per cent of India's population and is the only consistently profitable, almost debt-free telecom company in the government sector. The company has a market cap of over Rs 16,000 crore.
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Quarterly Results: The net sales increased by 24.1 per cent to Rs 467.61 crore and net profit increased by 48.5 per cent to Rs 38.39 crore in Q1FY25 compared to Q1FY24.
Annual Results: the net sales increased by 31.2 per cent to Rs 2,567.82 crore and net profit increased by 30.8 per cent to Rs 246.21 crore in FY24 compared to FY23.
As of June 2024, the company’s order book stands at Rs 4,682 crore wherein Government Nomination Contribution is 22.4 per cent, Tender Contribution is 75.7 per cent and Private Contribution is 1.9 per cent. The stock gave multibagger returns of 165 per cent in just 1 year whereas BSE Sensex Index was up by 26 per cent in the same period. Investors should keep an eye on this Small-Cap railway telecom stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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