RailTel shares rise as net profit zooms 40% in Q4

Shares of RailTel Corporation of India Ltd gained over 2% today after the telecom infrastructure provider posted a 40% rise in Q4 net profit. RailTel Corp stock opened 2.15 per cent higher at Rs 123.5 against the previous close of Rs 120.90 on BSE. Market cap of the firm stood at Rs 3840 crore.  The small cap share has gained 21 per cent in a year and fallen 5.22 per cent this year. Total 1.38 lakh shares of the firm changed hands amounting to a turnover of Rs 1.66 crore. The stock hit a 52-week high of Rs 148.70 on November 28, 2022 and fell to a 52-week low of Rs 87.45 on June 20, 2022.   

In terms of technicals, the relative strength index (RSI) of RailTel stands at 61.8, signaling neither the stock is overbought nor oversold. The stock has a one-year beta of 1, indicating very high volatility during the period. RailTel shares are trading higher than the 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.  

Net profit climbed to Rs 76.04 crore in the last quarter against Rs 54.31 crore in the corresponding quarter of the previous fiscal. Sales rose 51.15% to Rs 703.63 crore in Q4 from Rs 465.53 crore a year earlier.  

Sales zoomed 26.80% to Rs 1963.51 crore in the last fiscal against net profit of Rs 1548 crore in the previous fiscal.  However, profit fell 9.51% to Rs 189.08 crore in FY23 against Rs 208.95 crore in the previous fiscal.  

RailTel Corporation is a Mini Ratna (Category-I) PSU and is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network on exclusive right of way (ROW) along railway track. The company's segments include telecom services and project work services. 

Also read: Adani Green, DRL, Just Dial, BOB: Q4 profit up over 100%; should you buy these shares?