Shares of this smallcap company jumped around 3 percent after receiving an order from Webel Technology Limited worth over Rs. 23. 96 crores. The stock has delivered a multibagger return of 280 percent returns to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 15,886 crores, the shares of Railtel Corporation of India Ltd started Friday’s trading session on a higher note at Rs. 489 compared to its previous close of Rs. 486.50. During the trading session, the shares hit a high of Rs. 508.85, gaining around 3 percent and are currently trading at Rs. 494 apiece.
What happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received the work order from Webel Technology Limited for the Upgradation and Enhancement of existing IT & Non-IT DC infrastructure at WBSDC Monibhandar worth over Rs. 23.96 crores.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 25 percent from Rs. 668.36 crores during the December quarter to Rs. 832.7 crores in the March quarter. In addition, the net profits increased by 24 percent from Rs. 62.14 crores to Rs. 77.53 crores during the same period.
Order Book:
As per the latest data, the PSU company has a robust order book of more than Rs. 4,700 crores, where more than Rs. 2,000 crores of new orders were received during the current year and is expecting an order inflow to be in the range of Rs. 4,000 to 5,000 crores next year.
Important Financial ratios:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 11.45 percent during FY 22-23 to 13.47 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 14.21 percent to 18.43 percent during the same timeframe. The net profit margin also increased from 9.62 percent during FY22-23 to 9.58 percent during FY23-24.
Recent Developments:
Earlier, Railtel Corporation of India had received a work order from South Central Railway for Telecommunication works for the provision of IP-MPLS in 523RKM of the Secunderabad division of South Central Railway amounting to over Rs. 20.22 crores.
Additional Information:
Railtel Corporation offers various services, including telepresence services, data centre services, MPLS-VPN, Internet leased lines, consultancy services, signalling services, and Aadhaar-based services.
RailTel’s network passes through around 5,000 stations across the country, covering all major commercial centres and has also been involved in providing free WiFi access at selected railway stations in collaboration with Google.
Company Profile:
Headquartered in New Delhi, Railtel Corporation was incorporated in 2000. The company was formed to create a nationwide broadband, telecom, and multimedia network and modernize the train control operation and safety system of Indian Railways.
Written By Vaibhav Patil
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