Shares of RailTel Corporation of India Ltd, a small-cap railway PSU, gained momentum on Friday, September 27, 2024, following the announcement of a significant order win. The stock surged as much as 3.80%, hitting an intraday high of ₹478.85 per share.
This positive performance came after the company revealed a new work order worth ₹156 crore from the Rural Development Department, Mantralaya, Maharashtra. The stock's recent rally underscores its position as a multibagger, with consistent gains attracting investors looking to buy shares online.
RailTel Corporation announced its latest contract via an exchange filing, stating: "This is to inform that RailTel Corporation of India Ltd. ("the Company") has received the work order from the Rural Development Department, Mantralaya, Maharashtra, for operationalisation of the ASSK-GP project in the Konkan, Pune, and Nashik regions, amounting to ₹155.71 crore (excluding tax)." The completion of the project is expected by September 25, 2025, and it has already fuelled investor interest in the stock. With such a substantial contract, investors are increasingly looking to buy shares online, recognising RailTel's potential for future growth.
RailTel Corporation has been on a winning streak, securing multiple work orders in recent weeks. On September 17, the company bagged another notable order from Health Insurance TPA of India Ltd for services worth ₹48.7 crore.
In the same week, RailTel also received an order from Northern Railways for a railway project valued at ₹19.7 crore. These consecutive wins have strengthened RailTel's reputation as a reliable contractor in both telecom and infrastructure services, making it a popular choice for investors seeking to buy shares online.
RailTel's financial performance has also added to its recent market success. For the first quarter of FY25 (Q1FY25), the company posted a robust 25.2% year-on-year increase in net profit, reaching ₹48.7 crores compared to ₹38.9 crores in the same period last year (Q1FY24).
In addition, revenue from operations rose by 19.4%, from ₹467.6 crores to ₹558.1 crores. This solid financial footing further enhances RailTel's appeal for those looking to buy shares online, particularly in the rapidly growing railway and telecom sectors.
Established in 2000, RailTel was created to develop nationwide broadband and VPN services, as well as to modernise train control operations for Indian Railways. As a "Miniratna" public sector enterprise under the Government of India, RailTel now operates a vast network connecting approximately 6,000 stations across India, linking major commercial hubs.
Its growing portfolio of work orders and expanding telecom infrastructure have made it a standout performer, particularly among small-cap stocks. This, combined with recent contract wins, makes RailTel an attractive stock for those looking to buy shares online.
As of 9:42 AM on September 27, 2024, RailTel shares were trading 1.86% higher at ₹469.90 per share. In comparison, the BSE Sensex was up by a marginal 0.03%, trading at 85,863.55. With a market capitalisation of ₹15,080 crore, RailTel falls under the BSE SmallCap category. The company's consistent performance and high-value contract wins have made it a compelling option for investors to consider as they look to buy shares online.
RailTel's recent surge in stock price, driven by the announcement of a new ₹156 crore work order, reinforces its position as a small-cap multibagger in the railway sector. With multiple high-value contracts secured in the past few weeks and a strong financial performance in Q1FY25, RailTel continues to attract investors eager to buy shares online.
As the company works toward its long-term growth goals, it remains a promising stock for those seeking opportunities in the ever-evolving railway and telecom industries.
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