Rs 5,280 Crore Order Book: Navratna PSU Telecom Company Bags New Order Worth Rs 78,43,30,164 From 25,15,24,500 From Hindustan Petroleum Corporation Ltd
The stock has delivered a remarkable 246.28 per cent return over the past three years, underscoring its multibagger status.
RailTel Corporation of India Ltd, a Navratna PSU, has secured a significant work order from Hindustan Petroleum Corporation Limited valued at Rs. 25,15,24,500, excluding taxes. After this development shares, RailTel Corporation of India Ltd zoomed more than 9 to its intraday high of Rs 339.50 on the BSE in early trade on Monday.
This contract involves the renewal and potential expansion of MPLS/ILL links over a five-year period, from April 1, 2025, to March 31, 2030. The order is domestic in nature and does not involve any related party transactions. RailTel, known for its extensive optic fibre cable network and ICT services, continues to expand its footprint in the telecom infrastructure sector. The company has been recognised for executing critical national projects and is actively involved in various strategic partnerships to enhance its service offerings. With a robust order book and plans for significant capex in the coming years, RailTel is poised for continued growth. Notably, the stock has delivered a remarkable 246.28 per cent return over the past three years, underscoring its multibagger status.
RailTel Corporation of India Ltd., established in 2000, is a Navratna PSU under the Government of India, focusing on broadband, VPN services, and telecom infrastructure. The company operates a Pan-India optic fibre cable network, covering over 62,000 route kilometres and serving 70 per cent of the population.
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RailTel's business is divided into two main segments: Project Work Services and Telecom Services. The Project Work Services segment, which includes telecom and IT projects, has seen significant growth, contributing 59 per cent to the company's revenue in Q1 FY25. The Telecom Services segment, offering a range of telecommunication services, has also shown steady growth. RailTel's network infrastructure spans across 7,325 stations, providing high-speed connectivity to educational institutions and commercial centres. The company is expanding its data centre business and has strategic partnerships to explore opportunities in South Africa and other regions. With a strong order book and plans for further expansion, RailTel aims to achieve a revenue growth of 25-30 per cent in FY25.
As of March 21, 2025, the current stock price of RailTel is Rs 309.75. The stock has a 52-Week High of Rs 596.8 and a 52-Week Low of Rs 275.9. Market capitalisation stands at Rs 9,941.07 crores. The 1-Year Return is -14.01 per cent, while the 3-Year Return is 246.28 per cent.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 768 crores, reflecting a YoY growth of 14.85 per cent compared to Rs 668 crores in December 2023. The operating profit stood at Rs 121 crores, marking a decline of 6.55 per cent from Rs 130 crores in the same quarter last year. The profit after tax (PAT) increased by 4.68 per cent to Rs 65 crores from Rs 62 crores in December 2023.
In FY24, the company posted a revenue of Rs 2,568 crores, registering a 31.19 per cent growth compared to Rs 1,957 crores in FY23. The net profit for the year stood at Rs 246 crores, up 30.79 per cent from Rs 188 crores in the previous financial year.
With a PE ratio of 37.8, the company trades at a discounted valuation compared to the industry PE of 38.4. The company has ROCE of 20.2 per cent and ROE of 15.2 per cent.
Investors must keep this Mid-Cap railway stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.