Rs 4,700 crore order book & FIIs increase stake: This multibagger railway telecom company reports a 30.8 per cent jump in net profit to Rs 246.21 crore

The stock gave multibagger returns of 233 per cent in just 1 year whereas BSE Sensex Index is up by 21 per cent in the same period.

RailTel Corporation of India Ltd (RCIL) announced stellar Quarterly Results and annual results for the financial year 2023 – 2024. Here are the details:

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.

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 12,000 crore.

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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.

The shares of the company have a PE of 48x, an ROE of 16 per cent and an ROCE of 21 per cent. The stock gave multibagger returns of 233 per cent in just 1 year whereas BSE Sensex Index is up by 21 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.