Multi-Bagger Smallcap Railway Stock Soars 4% on New Order Win; Up 110% Over the Past Year

RailTel Corporation of India Ltd saw its share price surge by as much as 3.80% on Friday, September 27, 2024, reaching an intraday high of ₹478.85. The uptick followed the company's announcement of securing a significant work order worth ₹156 crore from the Rural Development Department, Mantralaya, Maharashtra.

In an exchange filing, RailTel confirmed, “We have received the work order from the Rural Development Department for the operationalization of the ASSK-GP project in the Konkan, Pune, and Nashik regions, amounting to ₹155,71,67,040 (excluding tax).” The project is expected to be completed by September 25, 2025.

This announcement follows a series of successful contract wins for RailTel. On September 17, the company secured an order worth ₹48.7 crore from the Health Insurance TPA of India Ltd, and earlier in the same week, it received a ₹19.69 crore work order from Northern Railways for a railway project.

RailTel's revenue from operations has shown impressive growth, increasing by 19.4% to ₹558.1 crore compared to ₹467.6 crore in Q1 FY24. Established in 2000, RailTel aims to modernize Indian Railways through broadband and VPN services and is recognized as a "Miniratna" public sector enterprise under the Government of India.

With a network spanning approximately 6,000 stations across the country, RailTel connects all major commercial hubs. According to the Bombay Stock Exchange (BSE), the company's market capitalization currently stands at ₹15,080 crore, categorizing it as a SmallCap stock.

BS