Market Performance
RailTel Corporation's share price jumped 4.6% on Thursday, June 5, hitting a seven-month high of ₹461.75 during mid-trading. The stock has been on a strong upward trend, gaining 15% in June and 75% from April lows.
Over the past five years, RailTel has delivered multi-bagger returns of 400%, making it a standout performer on Dalal Street.
Key Catalyst: ₹274 Crore Order Win
RailTel secured a major ₹274.40 Crore contract from the Motor Vehicles Department (MVD), Maharashtra. The project involves:
- Designing and implementing an Intelligent Traffic Management System (ITMS)
- Maintenance and operation for 10 years
- Focus on blackspots and vulnerable areas in Vidarbha Circle
This marks RailTel's second big order win in a week:
- May 31: ₹10.59 Crore deal with Mahanadi Coalfields for internet leased lines
- Recent: ₹25 Crore contract from Andhra Pradesh Police
Company Financial Highlights (Q4 FY25)
- Revenue: ₹1,308.28 Crore (57% YoY growth)
- Net Profit: ₹113.4 Crore (46.3% YoY increase)
The strong financial performance and consistent order wins have reignited investor interest in RailTel.
Why RailTel Shares Are Gaining Momentum?
- Order Inflow Boost: Recent contracts signal strong demand for RailTel's services.
- Sector Revival: Railway stocks are attracting renewed attention after a slowdown.
- Consistent Growth: Multibagger returns and strong quarterly results enhance confidence.
Summary
RailTel's share price surge reflects optimism around its new ₹274 Crore Maharashtra order and robust financials. With a 400% return in 5 years, the stock remains a key player in the PSU segment.
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