Rs 1102,10,18,033 orders & Rs 4,800 crore order book: This multibagger railway telecom company bags multiple projects from various clients across India

The stock gave multibagger returns of 270 per cent in just 1 year whereas BSE Sensex Index is up by 27 per cent in the same period.

RailTel Corporation of India Ltd (RCIL) informed that the company has bagged a total of 9 orders in February 2024 & March 2024 worth Rs 1102,10,18,033 from various clients across India. Here are the details:

Order No – 1: The company has received the work order from the Centre for Development Of Advanced Computing for VMWare virtualization licences with 3 years of support amounting to Rs 36,35,99,985 (including tax).

Order No – 2: The company has received the work order from the State Project Director (SPD) Bihar Education Project Council (BEPC) for the supply of student kits amounting to Rs 99,01,95,806 (including tax).

Order No – 3: The company has received the work order from the Municipal Corporation of Greater Mumbai for supply, installation, testing, commissioning, operations & maintenance of HMIS for the Health Department of BMC amounting to Rs 3,51,95,23,654 (excluding GST).

Order No – 4: The company has received another work order from the State Project Director (SPD) Bihar Education Project Council (BEPC) for the supply of teaching-learning material amounting to Rs 1,30,60,27,856 (including tax).

Order No – 5: The company has received the work order from the Odisha Computer Application Centre (OCAC) amounting to Rs 1,13,46,49,321 (Including GST) to establish an IP-MPLS network connectivity in Odisha.

Order No – 6: The company has received the work order from the State Transport Authority, Odisha amounting to Rs 87,84,72,750 (including GST) for the upgradation of the existing Command Control Centre to the Unified Command Control Centre & Implementation of the Intelligent Enforcement Management System (IEMS).

Order No – 7: The company has received the work order from Prasar Bharati Broadcasting Corporation of India for the design, development, implementation, operations and maintenance of the OTT platform amounting to Rs 1,39,73,56,000 (including tax).

Order No – 8: The company has received the work order from the Ministry of Defence for the laying of OFC cable and maintenance for a 3-year amounting to Rs 18,21,33,918 (including tax).

Order No – 9: The company has received the work order from Western Railways amounting to Rs 124,90,58,743 for the implementation of a unified communication infrastructure comprising IPMPLS LAN infra, VOIP exchange, IP based control communication and replacement of UTN over Western Railway.

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 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 4,800 crore supported by new orders of Rs 2,000 crore this year positions them well for growth, with an expected order inflow of Rs 4,000-5,000 crore next year. 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.

According to Quarterly Results, the net sales increased by 47.1 per cent to Rs 668.36 crore and net profit increased by 94.5 per cent to Rs 62.14 crore in Q3FY24 compared to Q3FY23. According to nine-month results, the net sales increased by 37.7 per cent to Rs 1,735.12 crore and net profit increased by 49.2 per cent to Rs 168.68 crore in 9MFY24 compared to 9MFY23.

The stock gave multibagger returns of 270 per cent in just 1 year whereas BSE Sensex Index is up by 27 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.