RailTel shares zoom 277% in a year; can this multibagger PSU stock revisit one-year high?

Shares of RailTel Corporation of India Ltd have gained around 277 per cent in the past one year. The stock was last seen trading 7.48 per cent higher at Rs 408.55 on Friday. Considering this price, it was down 11.05 per cent from its one-year high value of Rs 459.30, a level seen earlier this year on January 25.

Even so, the multibbager rail PSU scrip has rallied 324.69 per cent compared to its 52-week low level of Rs 96.20, hit on March 28 last year.

Technical analysts largely remained 'bullish' on the counter. Support could be seen around the Rs 400-370 zone. On the higher side, a decisive breach above Rs 419 level is required for a potential upside target of Rs 468.

AR Ramachandran from Tips2trades said, "Railtel is bullish on daily charts with next resistance at Rs 419. A daily close above this resistance could lead to a upside target of Rs 468 in the near term. Support will be at Rs 370."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 380 and resistance at Rs 414. A decisive close above Rs 414 level may trigger a further upside till Rs 435."

DRS Finvest founder Ravi Singh said RailTel's stock looked strong on daily charts. "It may see Rs 435 level in the near term. Keep stop loss placed at Rs 398," the market expert stated.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 56.62. 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 50.14 against a price-to-book (P/B) value of 7.08. Earnings per share (EPS) came at 7.58 with a return on equity (RoE) of 14.12.

RailTel Corp, a Mini Ratna (Category-1) PSU, is an information and communications technology (ICT) provider and one of the largest neutral telecom infrastructure providers in the country with a pan-India optic fiber network. As of June 2023, the government holds a 72.84 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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