The shares of the public sector enterprises gained up to 5 percent after the company received a new work order from the Ministry of Railways worth Rs 186.81 crore.
RailTel Corporation of India Ltd has a market capitalization of Rs 17,378.81 crore, the shares were trading in green at Rs 544.40 per share, increasing around 3.12 percent as compared to the previous closing price of Rs 523.45 apiece.
Reason for rise:-
Today, the company shares have seen a bullish movement after RailTel Corporation of India Ltd received a new work order from the Ministry of Railways worth Rs 186.81 crore for the Design, Development, Implementation, Operations, and Maintenance of HMIS and Integrated Empanelled Hospital Referral Portal for Indian Railways.
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Financial Analysis:-
Examining the company’s financial performance, revenue magnified by 19 percent from Rs 697 crore in Q4FY23 to Rs 833 crore in Q4FY24, however during the same period time, net profit zoomed by 4 percent from Rs 75 crore to Rs 78 crore.
Order Book:-
As of June 2024, the company’s order book stood at Rs.4,682 crore. with an expected order inflow of Rs 4,000-5000 crore in FY25, driven by upcoming tender from the Indian railways, state governments, and other sectors. The potential KAVACH project orders, estimated to be in the range of Rs 5,000 crore to Rs 7,000 crore, will further bolster the order book.
Expansion & remarkable return:-
RailTel intends to expand its offering of services to encompass the complete range of Enterprise services, which will create further growth opportunities. It will expand capabilities in e-office, CoD, RDN, VSS, Edge Data Center-centric services, and others.
The shares have given a return of 37.99 percent in six months and a multi-bagger return of 236.20 percent in a year. If an investor invested Rs 1 lakh a year ago, it would now be worth Rs 3.36 lakh.
Company profile:-
RailTel Corporation of India Limited is an India-based neutral telecom infrastructure provider, which owns a Pan-India optic fiber network on right of way (ROW) along a railway track. The Company’s segments include Telecom Services and Project Work Services.
Written by:- Abhishek Singh
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