Rs 4,500 crore order book: Heavy buying witnessed in this multibagger railways telecom stock; hits back-to-back 52-week highs!
The stock gave multibagger returns of 130 per cent in just 6 months whereas BSE Sensex Index is up by 10.06 per cent.
On Friday, one of the Top Gainers on BSE, shares of RailTel Corporation of India Ltd jumped 18 per cent to make a new 52-week high of Rs 247 per share. At the closing bell, shares of the company were trading at Rs 242.80 per share, up 16 per cent with a spurt in volume by 3.42 times on BSE.
In the recent trading sessions, the stock is hitting back-to-back 52-week highs due to the company announcing stellar Quarterly Results (Q1FY24), receiving multiple orders, healthy order book and a declared final dividend. Here are the details:
Quarterly Results: The net sales increased by 24.14 per cent to Rs 468 crore and net profit increased by 46.15 per cent to Rs 38 crore in Q1FY24 compared to Q1FY23.
Orders Received: The company received one order from Pimpri Chinchwad Smart City Limited, Pune for providing end-to-end services for monetization on the revenue-sharing model. The order is worth Rs 700 crore and will be completed in 10 years. And another order was received from Kerala State Information Technology Infrastructure Ltd for the supply, installation, testing, commissioning and maintenance of ISP hardware, software and license. The order is worth Rs 27.91 crore (excluding GST) and will be completed in 90 days.
Order Book: As of June 30, 2023, the company has a healthy order book of Rs 4,500 crore.
Dividend: The company declared a final dividend of Rs 1.05 per share for a face value of Rs 10 each. The record date for the final dividend was August 24, 2023.
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About the company: 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 7,800 crore.
The stock gave multibagger returns of 130 per cent in just 6 months whereas BSE Sensex Index is up by 10.06 per cent. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.