Despite obtaining a work order from the Ministry of Defence for Rs. 18.21 crore, one of the largest neutral telecom infrastructure providers saw its shares fall by 10 percent. The stock has fallen on likely profit booking activity.
With a market capitalization of Rs 12,179.61 crore, the shares of Railtel Corporation of India Ltd were trading at Rs 379.50 per share, decreasing around 4.49 percent as compared to the previous closing of Rs 397.35 apiece.
According to the company filing, Railtel Corporation of India Ltd has received the work order for laying OFC cable and maintenance from the Ministry of Defence for a period of three years amounting to Rs 18.21 crore.
Railtel Corporation of India Ltd’s revenue rose by 454 percent, from Rs 454 crore in Q3FY23 to Rs 668crore in Q3FY24. During the same period, net profit grew by 93 percent, from Rs 32 crore to Rs 62 crore.
In DWDM Network the company has a pan India presence with more than 200 OADM (Optical Add/Drop Multiplexer) nodes. The network is capable of providing various services like 10G, 100G, and 200G. The Network covers all major cities of India and provides high availability of services.
RailTel has a large network in the market, which is a crucial value proposition in providing services to its clients. RailTel intends to invest in the upgrade of the backbone network, CNoC, access network, and 100G to 800G network at strategic sites by purchasing routers, power plants, charges, and cutting-edge technology.
Railtel is actively involved in the installation of video surveillance systems at more than 5000 railway stations. As of now, the work at 308 stations has been completed and the company is also establishing centralized monitoring rooms at all divisional and zonal headquarters of Indian railways.
The stock gained 126.49 percent in six months and 233.32 percent in a year. Investing Rs 1 lakh in the organization produces Rs 3.33 lakh per year.
RailTel Corporation of India Limited is a neutral telecom infrastructure provider situated in India. The company has a Pan-India optic fiber network located on train tracks. The company’s segments are Telecom Services and Project Work Services.
Written by:- Abhishek Singh
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