Here’s why this multibagger stock is buzzing in trade today

Buzzing in trade: Railtel Corporation of India witnessed a remarkable surge, with its shares climbing as much as 5.69 per cent to reach a new 52-week high of Rs 374 each. The boost came after the company secured a work order from Rail Vikas Nigam Limited for Data Centre Hosting & Application Support services, valued at over Rs 35 crore.

In an exchange filing, the company said, “This is to inform that RailTel Corporation of India Ltd. ("the Company") has received the work order from Rail Vikas Nigam Limited for Data Centre Hosting & Application Support services amounting to Rs. 35,08,09,200 (Excluding Tax) for service period of 3 years.”

Railtel Corporation has secured four orders worth nearly Rs 300 crore in the last 10 days, contributing to the positive momentum. 

Furthermore, this small-cap stock demonstrated impressive growth, surging over 185 per cent in 2023 and delivering notable returns to investors.

Last week, Railtel Corporation received an order exceeding Rs 120 crore from South Central Railway for comprehensive signalling and telecommunication works, specifically for the provision of an automatic block signalling system in the Yermaras-Nalwar section of Guntakal division in South Central Railway. 

Additionally, the company secured a work order from Bihar Education Project Council, valued at over Rs 76 crore, for the supply of Teaching Learning Material for Class I to III under a Rate Contract.

Financial performance

Railtel Corporation of India reported robust performance in Q2FY24, with a profit surge of over 23 per cent annually to Rs 68.2 crore. 

The company's revenue also witnessed a notable increase of 40 per cent to Rs 599.2 crore, as disclosed in a regulatory filing. 

Net sales showed a growth of 40.94 per cent at Rs 599.15 crore, while Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at Rs 128.9 crore, marking a 16 per cent increase from the previous fiscal year.

With a market capitalisation of Rs 11,682 crore, Railtel Corporation of India, a state-owned telecom infrastructure provider, focuses on building a nationwide broadband telecom and multimedia network across the country. Additionally, the company is committed to modernising train operations and administration network systems.

As of 12:45 pm, shares of Railtel Corporation of India were trading 2.95 per cent higher at Rs 364.30 per share.