RailTel Corporation share price extends gain for the second straight session; up over 168% in 2023
RailTel Corporation of India Ltd share price continued to rise for the second straight session on strong volumes. RailTel Corporation share price surged by more than 7.5%, touching a new all-time high of ₹363.65 on the BSE. RailTel Corporation share price today opened at ₹340.40 apiece on BSE. According to technical analysts, the RailTel Corporation of India Ltd share price volume action indicates that the stock is in an uptrend that could continue.
“Technically the next resistance is near ₹450 levels and positional support would be near ₹300 and immediate support at ₹340. Overall trend remains positive for targets would be ₹400 & 450 on charts,” said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.
As per trendlyne data, RailTel Corporation share price rose 168.79% and outperformed its sector by 134.19% in the past year.
Following back-to-back work orders this week, Indian Railways’ public-sector undertaking (PSU) stock saw a lock-in at more than 16 percent upper circuit on Friday, reaching a 52-week high of ₹348 per share on the BSE.
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Last week, the stock rose sharply due to back-to-back order wins. RailTel Corporation of India Ltd received orders totalling ₹263.47 crore in the final week of December. In a disclosure to the exchange, the company stated that it has obtained a work order worth ₹66.83 crore from N F Railway Construction for the provision, setup, testing and commissioning of an integrated tunnel communication system, emergency call systems in tunnels and IPIS at stations in the Bhairabi-Sairang New Single line Section of Lumding Division.
The Bihar Education Project Council also sent the company a work order for the supply of instructional materials for classes I through III under a rate contract worth ₹76.19 crore.
The South Central Railway awarded the company a work order worth ₹120.45 crore for complete signalling and telecommunication works for the installation of an automated block signalling system in the Guntakal division’s Yermaras-Nalwar section.
Given that 2024 is an election year and the BJP has already won the state elections, analysts predict that the railway and defence industries will continue to see rapid expansion.
Analysts predict that if the BJP wins the upcoming 2024 election for a third time, massive sums of money will be set aside for these sectors and would remain in high focus towards growth because the party has historically given priority to the railway and defence industries.
In the September quarter of the current fiscal year, RailTel reported a 23.4% increase in profit. In a regulatory filing made on October 26, RailTel reported a 40% increase in revenue, or ₹599.2 crore, and a net profit of ₹68.15 crore.
Also Read: Bajaj Auto December sales grow 16% YoY to 3.26 lakh units; two-wheeler sales up 15%
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 01 Jan 2024, 10:01 AM IST
