RailTel Corporation shares zoom 18% to hit one-year high; here's what analysts say

Shares of RailTel Corporation of India Ltd saw a sharp uptick in Friday's trade to scale their fresh 52-week high levels. The stock soared 17.53 per cent to hit a high of Rs 611.10. It was last seen trading 16.77 per cent higher at Rs 607.15. At this price, the multibagger stock has rallied 339.01 per cent in the past one year.

The rail PSU has recently recommended a final dividend of Rs 1.85 per share for the financial year 2023-24 (FY24). This was in addition to an interim dividend of Re 1 apiece already paid by the company for FY24.

"The final dividend is subject to approval of shareholders in the ensuing Annual General Meeting (AGM). It would be paid within 30 days from the date of its declaration at the AGM," it stated.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "RailTel was in consolidation phase recently. Currently, the stock has hit a 52-week high due to a focus on rail infrastructure and signalling. Investors can buy it on dips, given its stellar performance. Those holding should continue with their positions, expecting 10 per cent further upside. Keep a trailing stop loss for this trade."

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Technically, the counter is in overbought terrain though there is no sign of exhaustion in the counter. The zone of Rs 500 is likely to provide a cushion from any short-term blip, while the momentum is likely to continue on the higher front. It is advisable to trail profits with higher stop loss till momentum prevails."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 560 and resistance at Rs 612. A decisive close above Rs 612 level may trigger a further upside towards Rs 635. The expected trading range will be between Rs 560 and Rs 635 for the short term."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 77.83. 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 68.03 against a price-to-book (P/B) value of 9.13. 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 fiber network. As of March 2024, the government held a 72.84 per cent stake in it.