The shares of this Navratna PSU stock jumped over 5 percent on Thursday from its intraday low after the company announced that it had secured an order worth Rs 274 crore. In this article, we will look at the details of the order.
With a market capitalization of Rs 14,670 crores, the shares of Railtel Corporation of India Ltd are currently trading at Rs 457 per share, down by 26 percent from its 52-week high of Rs 618 per share. In the last one year, the stock has delivered a return of 28.60 percent.
The company, through a stock exchange filing, announced that it has secured an order worth Rs 274.40 crores from the Motor Vehicles Department, Maharashtra. The scope of the work includes the design, implementation, operation, and maintenance of the Intelligent Traffic Management System (ITMS) on various blackspots/ vulnerable spots in the Vidarbha Circle for a period of 10 years, i.e., till 4 September 2036. However, it mentioned that the exact order size will be known after the PO is issued.
Financial Highlights
The company reported a revenue of Rs 3,478 crores in FY25, up by 35.43 percent from its FY24 revenue of Rs 2,568 crores. Additionally, it reported a net profit growth of 22 percent to Rs 300 crores in FY25 from Rs 246 crores in FY24.
The stock delivered an ROE and ROCE of 16.46 percent and 21.78 percent respectively, and is currently trading at a P/E of 46.63x as compared to its industry average of 31.53x.
RailTel Corporation of India Ltd is a broadband, telecom, and IT services provider throughout India and internationally. Services include, but are not limited to, RailWire broadband, application servers, data centers, cloud server, VPN, cybersecurity, tower colocation, and Aadhaar services. It also provides execution of projects like station Wi-Fi, optical fiber networks, and video surveillance, for government, corporates, banks, and other institutions.
Written by Satyajeet Mukherjee
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