Shares of this multibagger stock under the ‘small-cap’ category spiked around 15 percent in Friday’s trading session after the company secured an order worth Rs 120.45 crores from South Central Railway.
With a market capitalization of Rs 10,815.62 crores, the stocks of RailTel Corporation of India Limited opened their trading hour on Friday at Rs 298 and currently trade at Rs 336.80, gaining around 15 percent as compared to the previous close of Rs 293.65 apiece.
Such sharp movements in the stock price were observed after the company, through a regulatory filing with the BSE, intimated that the company received a work order worth Rs 120.45 crores from South Central Railway.
The above order pertains to providing automatic block signalling systems in the Yermaras – Nalwar section of the Guntakal Division in the South Central Railway. The period for the order to be executed is within 720 days.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of approximately 158 percent to its stakeholders, viz, if someone had invested Rs 1 lakh into the stock six months ago, it would have converted to Rs 2.58 lakhs.
During the recent financial quarters, the company’s prime business indicators such as operating revenues and after-tax profits witnessed a dip in numbers with the former reducing from Rs 703.63 crores during Q4FY22-23 to Rs 467.61 crores during Q1FY23-24, and, the latter, during the same period, halved from Rs 76.04 crores to Rs 38.39 crores.
As per the recent presentations, the company expects aggressive growth in the telecom segment along with growth in its project revenues and EBIT numbers. In addition, the company expects a total capital expenditure (Capex) of Rs 180 crores for the current financial year.
Incorporated in 2000, RailTel Corporation of India Limited is engaged in the business of providing broadband telecom and multimedia networks and services within as well as outside India. The company serves various institutions including telecom operators, banks, public sector undertakings, educational universities, etc.
Written by Amit Madnani
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