RailTel stock rises 3% as PSU bags Rs 187 crore order from government

stock has zoomed 239 percent in the last one year, outperforming benchmark Nifty which has risen 24 percent during this period.

Shares of RailTel Corporation jumped over 3 percent on July 23 after the company secured a fresh order win from the Ministry of Railways. The order is valued at Rs 186.81 crore (including tax).

"This is to inform that RailTel Corp has received the work order from Ministry Of Railways for Design, Development, Implementation, Operations and Maintenance of HMIS and Integrated Empanelled Hospital Referral Portal for Indian Railways amounting to Rs 1,86,81,00,000 (Including Tax)," RaiTel said in a regulatory filing.

The order has to be executed within four years. "The order is awarded by Indian Railways, Ministry Of Railways, which is a Promoter of RailTel," the state-run firm added. The order win announcement came post-market hours on Monday.

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RailTel Corp is a Mini Ratna PSU that provides information and communications technology (ICT) and neutral telecom infrastructure with a pan-India optic fibre network.

At 9:40 am, the company's shares were trading 2.9 percent higher at Rs 539.05 on the National Stock Exchange (NSE). The stock has zoomed 239 percent in the last one year, outperforming benchmark Nifty which has risen 24 percent during this period.

All railway stocks are in focus today as investors eye higher budgetary sops in the Union Budget 2024. InCred Equities expects the government to focus on key infrastructure segments such as railway and metro rail, among others.

Mehta Securities anticipates Budget 2024 to continue the interim Budget's trajectory, expecting strong performance in railway stocks due to their solid order books. Reliance Securities predicts higher allocations for railways, potentially boosting infrastructure order conversions.

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