Shares of this small-cap company jumped up to 3 percent in Monday’s trading session after receiving multiple orders worth Rs. 482.55 crores. The shares have delivered a multibagger return of 247 percent to its shareholders in one year.
With a market capitalization of Rs. 11,387 crores, the shares of Railtel Corporation of India Ltd started Monday’s trading session on a higher note at Rs. 369 compared to its previous close of Rs. 250.75. During the trading session, the shares hit a high of Rs. 378.70, gaining around 3 percent and are currently trading at Rs. 355 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received orders worth Rs. 351.95 crores and Rs 130.60 crores over the weekend.
On 16 March, RailTel Corporation of India received the work order from the State Project Director (Spd) Bihar Education Project Council for Supply amounting to Rs. 130.60 crores. The order expected to be completed by June 13, 2024, involves the empanelment of an agency for the supply of teaching and learning material for Class I to V.
Furthermore, On 17 March, the company received another work order from the Municipal Corporation of Greater Mumbai for the supply, installation, testing, commissioning, operations and maintenance of HMIS for the Health Department of BMC amounting to 351.95 crores.
Coming onto the company’s financial statement, the revenue increased by 12 percent from Rs. 599 crores during the September quarter to Rs. 668 crores in the December quarter. On a contrasting note, the net profits decreased by 9 percent from Rs. 68 crores to Rs. 62 crores during the same period.
The company has a robust order book of more than 4,800 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. Furthermore, the company’s current year Capital expenditure was around Rs. 180 crores.
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.
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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