RailTel Corporation secures Rs 187 crore order from government; stock up 2%

RailTel Corporation of India Ltd on Monday announced it secured a fresh order win from the Ministry of Railways. The order is valued at Rs 186.81 crore (including tax). "This is to inform that RailTel Corp has received the work order from Ministry Of Railways (Railway Board) for Design, Development, Implementation, Operations and Maintenance of HMIS and Integrated Empanelled Hospital Referral Portal for Indian Railways amounting to Rs 1,86,81,00,000 (Including Tax)," it stated in a BSE filing.

It also mentioned that the order has to be executed within four years. "The order is awarded by Indian Railways, Ministry Of Railways, which is a Promoter of RailTel," the state-run firm added.

Railway stocks will be in focus as investors eye higher budgetary sops in the Union Budget 2024 presentation that is scheduled to be held tomorrow, July 23. With that being said, a few brokerages largely remained positive on the sector.

InCred Equities expects the government to focus on key infrastructure segments such as railway and metro rail, among others.

Mehta Securities anticipates the Budget 2024 to be an extension of the interim Budget and believes there is further steam left in railway stocks, given their robust order books.

Reliance Securities sees higher allocations towards railways, which could lead to increased infrastructure order conversions. 

Meanwhile, RailTel's order win announcement came post-market hours today. Earlier in the day, the stock settled 2.06 per cent higher at Rs 527 on NSE. At this price, it gained 49.27 per cent in 2024 so far.

On the technical setup, the counter traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs.

As per BSE, the counter's 14-day relative strength index (RSI) came at 56.28. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 67.60 against a price-to-book (P/B) value of 9.08. Earnings per share (EPS) stood at 7.64 with a return on equity of 13.42.

RailTel Corp, a Mini Ratna (Category-1) PSU, provides information and communications technology (ICT) and neutral telecom infrastructure with a pan-India optic fibre network. As of June 2024, the government held a 72.84 per cent stake in the PSU.