RailTel Corporation of India, a key player in the railway sector, announced on September 17 that it has secured a project worth Rs 48.7 crore from Health Insurance TPA of India Ltd. The company will develop a solution portal and mobile application under this contract, with the project scheduled for completion by June 14, 2030. This new project is a significant addition to RailTel’s portfolio, and the news has sparked positive movement in the company’s stock.
RailTel Shares Rise Amid New Project Announcement
Following the announcement, RailTel’s stock saw a surge on Tuesday. The shares rose by 3%, hitting an intra-day high of Rs 483.15. The closing price for the day was Rs 473.55, marking a 0.86% increase. This rise indicates investor confidence in the company’s ongoing projects and future potential.
Massive Rs 7000 Crore ‘Kavach’ Tender on the Horizon
One of the biggest news around RailTel is its focus on the upcoming ‘Kavach’ system tender, valued at Rs 7000 crore. The tender is set to open on September 19, and RailTel is eyeing this as a major growth opportunity. The company has recently been granted Navratna status by the government, solidifying its position as a key player in the industry. Securing this massive contract would further boost its market presence.
Additional Orders Strengthen RailTel’s Portfolio
September has been a busy month for RailTel, as it has already secured three major orders. On September 13, the company received a Rs 19.69 crore order from Northern Railway, followed by another order worth Rs 10.92 crore on September 4. These contracts reflect RailTel’s steady progress in expanding its operational capabilities and revenue streams.
How Has RailTel Performed in the Stock Market?
Investors have had mixed experiences with RailTel’s stock in recent months. Over the last one month, the stock price has seen a slight dip of 0.4%, reflecting short-term market volatility. However, for those holding the stock for six months, the return has been a solid 35%. Over the past year, the stock has surged by 112%, making it a multibagger for long-term investors.
The company’s 52-week high on the BSE is Rs 618, and the 52-week low stands at Rs 200.30. Notably, the Indian government holds a 72.84% stake in the company, reinforcing its backing as a state-owned enterprise.
(This is not an investment advice. The stock market is subject to risks. Please seek expert advice before making any investment)
