RailTel shares defy weak market sentiment, gain on Rs 39-crore order win

Shares of RailTel Corporation of India Ltd rose over 2% today after the telecom infrastructure provider said received a  work order from National Informatics Centre Services (NICSI) for Onsite SOC and NOC with high availability solution amounting to Rs 39.37 crore.  

In the afternoon session, RailTel Corp climbed 2.37 per cent to Rs 133.90 against the previous close of Rs 130.80 on BSE. The rally in the stock came even as the broader market saw correction from record high. While BSE Sensex tanked 420 points to 65,365, Nifty50 lost 129 points to 19,367. 

Market cap of the firm rose to Rs 4268.48 crore. Total 4.15 lakh shares of the firm changed hands amounting to a turnover of Rs 5.49 crore. The stock has gained 42 per cent in a year and risen 4.77 per cent this year. The stock hit a 52-week high of Rs 148.70 on November 28, 2022 and fell to a 52-week low of Rs 93 on July 11, 2022.   

In terms of technicals, the relative strength index (RSI) of RailTel stands at 56.9, signaling neither the stock is overbought nor oversold. The stock has a one-year beta of 0.9, indicating low volatility during the period. RailTel stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.   

“This is to inform that RailTel Corporation of India Ltd. (“the Company”) has received the work order from National Informatics Centre Services Incorporated (“NICSI”) for Onsite SOC and NOC with high availability solution with 5 years support installation and training amounting to Rs. 39.37 Crore (including taxes),” said RailTel  

Meanwhile, net profit climbed 40% to Rs 76.04 crore in the March 2023 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. 

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