Rs 4,682 crore order book: This multibagger railway telecom stock to keep under radar as company reports 48.5 per cent jump in PAT & bags order worth Rs 186.81 crore from Indian Railways
The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Sensex Index was up by 23 per cent in the same period.
On Friday, shares of RailTel Corporation of India Ltd (RCIL) gained 1.21 per cent to Rs 501.90 per share from its previous closing of Rs 495.90 with an intraday high of Rs 508.75 and an intraday low of Rs 480.80. The stock’s 52-week high is Rs 618 and its 52-week low of Rs 163.20.
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 24.1 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.
The company is also awarded a work order by the Ministry of Railways (Railway Board). 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.
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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.
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 200 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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