RailTel shares rise after winning ₹36.8 crore order from South Eastern

RailTel Corporation of India has made headlines today as its shares gained momentum following the announcement of a significant work order from South Eastern Railway. This order, valued at approximately ₹36.78 crore, has positively impacted the company's stock performance, with shares trading at ₹396.55, reflecting an increase of 1.39% during early trading hours on October 23, 2024.

Details of the order

The contract entails the provision of electronic interlocking systems and signalling arrangements at various cabins in Bondamunda. The completion deadline for this project is set for October 16, 2025. With the company steadily expanding its portfolio, this order reinforces RailTel's commitment to enhancing railway infrastructure and safety.

Investors looking to invest in stocks associated with railway modernisation and technology may find RailTel Corporation an attractive option. The company's recent orders, including one from Kavaratti Smart City worth over ₹51 crore and a contract for the Controller General of Defence Accounts amounting to ₹21.64 crore, highlight its robust order book and potential for future revenue growth.

Upcoming financial results and interim dividend

Adding to the excitement, RailTel's board of directors will meet on October 28, 2024, to consider the unaudited financial outcomes for the quarter and half year ended September 30, 2024. This meeting will also address the possibility of declaring an interim dividend for the financial year 2024-25. Investors will be keen to see how these results impact the company's valuation and overall performance.

In the previous quarter, RailTel reported an 18.2% drop in profit to ₹139.3 crore, although revenue surged by 31.6% year-on-year to ₹13,372.4 crore. These figures reflect the company's ability to grow its top line even in challenging conditions, making it a compelling option for those who wish to invest in stocks with strong growth potential.

Key takeaways

• Order win: RailTel Corporation secured a significant order worth ₹36.78 crore from South Eastern Railway, enhancing its revenue prospects.
• Positive stock performance: Shares have gained 1.39%, indicating investor confidence following the order announcement.
• Upcoming financial meeting: The board meeting on October 28 will address the company's financial results and potential interim dividend, crucial for shareholders.
• Growth potential: Despite a decline in net profit, a substantial revenue increase positions RailTel as a viable option for those looking to invest in stocks linked to infrastructure development.

Investors should keep an eye on RailTel Corporation as it continues to secure new projects and work towards enhancing its financial health.