Rs 4,700 crore order book & FIIs increase stake: Multibagger railway telecom stock hit fresh 52-week high; Earlier bagged Rs 23,96,16,993 order from Webel Technology Ltd
The stock gave multibagger returns of 345 per cent in just 1 year whereas BSE Sensex Index is up by 23.1 per cent in the same period.
On Friday, one of the Top Gainers on BSE, shares of RailTel Corporation of India Ltd (RCIL) gained 18.86 per cent and made a fresh new 52-week high of Rs 618 per share from its previous closing of Rs 519.95 per share. At the closing bell, shares of the company were trading at Rs 596.80 per share, up 14.78 per cent with a spurt in volume by more than 2.43 times on BSE.
RailTel Corporation has proposed a final dividend of Rs 1.85 per share (18.5 per cent of paid-up capital) for the financial year 2023-24, adding to the previously announced interim dividend of Rs. 1.00 per share. This final dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM) and will be paid within 30 days of its declaration. It's important to note that trading in RailTel shares by company insiders and their families has been closed since July 1st, 2024 and will remain closed for 48 hours after the unaudited financial results for the quarter ending June 30th, 2024 are released.
Earlier, RailTel Corporation of India Ltd 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 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 19,000 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.
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 345 per cent in just 1 year whereas BSE Sensex Index is up by 23.1 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.
Also Read: President of India sold 11,17,57,277 shares of this multibagger railway infra company: Bagged 2 orders worth Rs 271,05,07,122 from Ministry of Railways