Shares of this small-cap company jumped up to 2 percent in Monday’s trading session after receiving an order from State Transport Authority worth Rs. 87.85 crores. The shares have delivered a multibagger return of 293 percent in one year.
With a market capitalization of Rs. 14,189 crores, the shares of Railtel Corporation of India Ltd started Monday’s trading session on a flatter note at Rs. 459.80. During the trading session, the shares hit a high of Rs. 469.35, gaining 2 percent and are currently trading at Rs. 443 apiece.
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 the State Transport Authority, Odisha amounting to Rs. 87.85 crores for the upgradation of the existing command control centre to unified command control centre and implementation of intelligent enforcement management system.
Earlier, last week, the company received the work order from Prasar Bharati Broadcasting Corporation Of India for the design, development, implementation, operations and maintenance of the OTT platform amounting to around Rs. 1.39 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. 4000 to 5000 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.
Looking at the company’s important financial ratios, the return on equity was at 11.91 percent during FY22-23 and during the same period, the return on capital employed was recorded at 14.90. Moreover, the net profit margin was at 9.62 percent in FY22-23.
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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