Rs 4,682 crore order book: Heavy buying in this multibagger railway telecom stock; Gains over 6 per cent & earlier bagged an order worth Rs 186.81 crore from Indian Railways
The stock gave multibagger returns of 223 per cent in just 1 year whereas BSE Sensex Index was up by 23 per cent in the same period.
On Monday, shares of RailTel Corporation of India Ltd (RCIL) gained 6.4 per cent to an intraday high of Rs 516 per share from its previous closing of Rs 485.05 per share. At the closing bell, shares of the company were trading at Rs 509.9 per share, up 5.12 per cent with 5,85,854 qty traded on BSE.
RailTel Corporation of India Ltd. (RailTel) was awarded a work order by the Ministry of Railways (Railway Board), a domestic entity in which RailTel has a promoter stake (72.84 per cent shareholding). The order, valued at Rs 1,86,81,00,000 (including tax), tasks RailTel with designing, developing, implementing, operating, and maintaining an improved Hospital Management Information System (HMIS) along with an integrated referral portal for empanelled hospitals within the Indian Railways network. The project is expected to be completed within 4 years. This qualifies as a related party transaction, but due to the promoter relationship, it wouldn't be considered an arm's length transaction.
Additionally, the Board of Directors of the company announced Rs 1.85 per share as the final dividend and fixed the record date as August 14, 2024.
Earlier, the company secured a domestic work order valued at Rs 23,96,16,993 from Webel Technology Limited. The order entails upgrading and enhancing the IT and non-IT data centre infrastructure at WBSDC Monibhandar. The project is expected to be completed by September 25, 2024. There are no related party transactions or promoter/promoter group/group company interests involved in this order.
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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, debt-free telecom company in the government sector. The company has a market cap of over Rs 16,000 crore.
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.
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 223 per cent in just 1 year whereas BSE Sensex Index was up by 23 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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