Rs 4,700 Crore Order Book: This Railway Infra Company Bags Orders Worth Rs 81,45,64,548; Stock gains over 180 per cent in just 1 year!
The shares of the company have delivered a return of around 183 per cent to its shareholders in just 1 year.
This Small-Cap railway infra company was incorporated in 2000 with the objective of creating nationwide broadband and VPN services, telecom, and multimedia networks to modernize the train control operation and safety system of Indian Railways. It is a "Miniratna" PSE of the Government of India. At present, RailTel's network passes through around 6,000 stations across the country, covering all major commercial centers.
RailTel Corporation of India has been awarded a work order from the National Informatics Centre Services Incorporated for the supply, installation, configuration, commissioning, and integration of ICT infrastructure. Additionally, the Company will handle the operation and maintenance of the ICT infrastructure in compliance with the SLA. The total amount for these services, including tax, is Rs. 81,45,64,548. The order or contract is expected to be executed by August 31, 2024.
Share Performance:
On Friday, the company's stock closed at around Rs 378.70 per share, with a market capitalization of Rs 12,153.94 crore. The stock has delivered a multibagger return of around 183 per cent in just 1 year.
Financial performance:
According to the Quarterly Results, in Q4 FY24, the company reported a revenue of Rs 833 crore compared to Rs 697 crore and a net profit of Rs 78 crore compared to Rs 75 crore. In FY24, the company reported a revenue of Rs 2568 crore compared to Rs 1947 crore, and a net profit of Rs 246 crore, compared to a profit of Rs 187 crore in the previous year.
Regarding the shareholding pattern, the promoters own 72.84 per cent of the company, while FIIs and DIIs hold 2.20 per cent and 2.64 per cent, respectively. Public or retail investors hold the remaining 22.32 per cent.
Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.