Rs 5,100 crore order book and FIIs & DIIs increase stake: This multibagger railways telecom company receives new order worth Rs 35,08,09,200 from Rail Vikas Nigam Ltd!
The stock gave multibagger returns of 260 per cent from its 52-week low of Rs 96.20 per share.
RailTel Corporation of India Ltd informed that the company has received the work order from Rail Vikas Nigam Limited for data centre hosting and application support services amounting to Rs 35,08,09,200 (Excluding Tax) for a service period of 3 years. The order is further extendable for 1 or more years.
Earlier, the company received the work order amounting to Rs 120,45,94,708 (including GST) from South Central Railway for comprehensive signalling and telecommunication works for the provision of an automatic block signalling system in the Yermaras-Nalwar section of the Guntakal division in South Central Railway. The order will be completed within 720 days (2 years) from LOI.
Today, shares of RailTel Corporation of India Ltd plunged 2.46 per cent to Rs 347.05 per share with an intraday high of Rs 357 and an intraday low of Rs 343.75. The stock gave multibagger returns of 260 per cent from its 52-week low of Rs 96.20 per share.
RailTel 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. In the fiscal year 2022-2023, the company reduced its debt, and as of right now, its total debt is only about Rs 41.8 crore. The company’s market cap of over Rs 11,000 crore and has been maintaining a healthy dividend payout of 43.2 per cent.
According to Quarterly Results, the net sales increased by 24.08 per cent to Rs 467.18 crore and net profit increased by 48.51 per cent to Rs 38.39 crore in Q2FY24 compared to Q2FY23. As of September 30, 2023, the company has a healthy order book of over Rs 5,100 crore. Additionally, FIIs have increased their stake to 1.46 per cent and DIIs have increased their stake to 3.54 per cent as of September 2023. Furthermore, according to Q3, FIIs and DIIs have increased their stakes. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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