Rs 4,700 crore order book & FIIs increase stake: This multibagger railway telecom company bags new order worth Rs 17,21,47,870 from DRDO

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 22 per cent in the same period.

RailTel Corporation of India Ltd (RCIL) informed that the company has received the work order from the Defence Research And Development Organisation (DRDO) for hiring IT resources for managing & sustaining IT services amounting to Rs 17,21,47,870 (Including Tax). The order will be completed by June 30, 2027.

Earlier, the company bagged an order worth Rs 51,53,29,790 (Including Tax) from Central Warehousing Corporation. The order includes supply installation testing and commissioning of modern video surveillance systems across India and will be completed by November 30, 2029.

Today, shares of RailTel Corporation of India Ltd (RCIL) gained 0.5 per cent to an intraday high of Rs 437.35 per share from its previous closing of Rs 356.65 per share. The stock’s 52-week high is Rs 491.15 per share and its 52-week low is Rs 116.15 per share.

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 fiber optic cables, RailTel reaches 70 per cent of India's population and is the only consistently profitable, debt-free telecom company in the government sector. The company has a market cap of over Rs 13,000 crore.

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Quarterly Results: The net sales increased by 24.6 per cent to Rs 832.70 crore and net profit increased by 24.8 per cent to Rs 77.53 crore in Q4FY24 compared to Q3FY24.

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.

The company experienced strong performance with both telecom and project segments exceeding Rs 300 crore in turnover and project segment margins improving. A robust order book of over Rs 4,700 crore as of March 31, 2024, with an expected order inflow of Rs 4,000-5,000 crore in FY25. They are expanding their rural broadband presence and remain committed to the NOIDA data centre project, signifying their focus on the growing Indian data centre market.

As of March 2024, FIIs have increased their stake to 2.20 per cent compared to 1.05 per cent in March 2023. The shares of the company have a PE of 52x, an ROE of 15 per cent and an ROCE of 20 per cent. The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 22 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.