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RailTel Corporation shares rose 3% after securing an order valued at ₹155.72 crore

Stocks
2 min Read Sep 27, 2024
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RailTel Corporation of India witnessed a 3% rise in its share price on September 27 after the company announced securing a significant order worth ₹155 crore. This development has created a buzz among investors looking to invest in stocks of the growing public sector enterprise.

At 09:21 AM, RailTel shares were trading at ₹474.25 on the Bombay Stock Exchange (BSE), reflecting a rise of ₹12.95 or 2.81%. The order comes from Maharashtra’s Rural Development Department for the operationalisation of the ASSK-GP project in the Konkan, Pune, and Nashik regions. This contract, valued at ₹155.71 crore (excluding taxes), is a major win for the company and contributes to its strong order book.

Recent orders boost RailTel’s growth prospects

In addition to the recent contract, RailTel has secured other major orders in the last few weeks:

  • On September 17, RailTel received a work order from Health Insurance TPA of India Ltd. The contract, valued at ₹48.7 crore (excluding taxes), involves developing an Integrated Claims Management Solution Portal and a mobile application, further boosting RailTel’s presence in the health tech sector.

  • On September 13, RailTel received a ₹19.69 crore order from Northern Railways for the provision of Double Distant signalling in connection with the Dedicated Freight Corridor (DFC) Feeder routes across the Lucknow Division. This project underlines RailTel’s pivotal role in enhancing railway infrastructure.

Performance analysis of RailTel’s shares

RailTel's stock performance has been notable in the past year. It reached a 52-week high of ₹618 on July 12, 2024, and a 52-week low of ₹200.30 on October 9, 2023. Currently, the stock is trading 25.36% below its 52-week high but remains 130.3% above its 52-week low, making it an attractive option for those planning to invest in stocks within the public sector.

Key takeaways

  • RailTel's shares saw a 3% gain after securing a ₹155 crore order.

  • Recent contracts worth ₹48.7 crore and ₹19.69 crore further strengthen the company’s order pipeline.

  • RailTel's stock is trading significantly above its 52-week low, making it appealing to investors interested in stocks in public-sector enterprises.

For those looking to invest in stocks, RailTel presents a strong growth opportunity, backed by its expanding order book and essential role in infrastructure projects.