RailTel Corporation soars 27% in 6 days on winning orders worth Rs 263 cr

In past two months, the stock has zoomed 68 per cent, while, in past six months it skyrocketed by 182 per cent.

Shares of RailTel Corporation of India (RailTel) hit a new high of Rs 368.85, as they rallied 9 per cent on the BSE in Monday’s intra-day trade backed of heavy volumes in an otherwise subdued market. In past six trading days, the stock of telecom services provider has surged 27 per cent after winning orders worth of Rs 263 crore. In past two months, it has zoomed 68 per cent. While, in past six months it skyrocketed 182 per cent.

At 10:09 AM; RailTel was quoting 8 per cent higher at Rs 366.10, as compared to 0.16 per cent decline in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 15.63 million equity shares representing nearly 5 per cent of total equity of the company changing hands on the NSE and BSE in first hour of trade, the exchange data shows.

On December 28, 2023, RailTel said it received a work order amounting to Rs 120.45 crore (including GST) from South Central Railway for comprehensive signaling and telecommunication works for provision of automatic block signaling system in Yermaras-Nalwar section of Guntakal division in South Central Railway. The order has to be executed within 720 days, the company said in an exchange filing.

Earlier, on December 27, RailTel had received the work order from Bihar Education Project Council for supply of teaching learning material for Class I to III under rate contract amounting to Rs 76.19 crore (including GST). While, on December 21, RailTel had received the work order from N F Railway Construction for supply, installation, testing & commissioning of integrated tunnel communication system, emergency call arrangements in Tunnels & IPIS at stations in Bhairabi- Sairang new single line Section of Lumding Division amounting to Rs 66.83 crore (Including GST).

RailTel is an information and communications technology (ICT) infrastructure provider and one of the largest neutral telecom infrastructure providers in India. It is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways.

It was incorporated with a key objective of modernizing the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks.

Its portfolio of services can broadly be classified as Telecom Network Services, Telecom Infrastructure Services, Managed Data Center and Hosting Services, and Projects (System Integration Services). Rail Tel uses the latest technology like high dense wavelength division multiplexing (DWDM) and multi-protocol label switching (MPLS) network.