RailTel rallies 7% on Rs 113-crore order win; multibagger zooms 200% in a year

Shares of RailTel surged up to 7 percent on March 15, a day after the company declared that it had received a Rs 113.46-crore work order from Odisha Computer Application Centre (OCAC).

The order is for setting up IP-MPLS network connectivity in Odisha under OdishaNet Phase 1.0. The project needs to be executed by September 2025, according to the company’s regulatory filing.

At 9:38am, the RailTel shares were trading at Rs 353.25 on the National Stock Exchange (NSE), up 4 percent from the previous closing. The stock closed 10 percent higher in the previous session.

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The RailTel stock has delivered multibagger returns of over 227 percent in the last one year, outperforming the benchmark Nifty 50 which has risen around 30 percent in this period.

RailTel Corporation is a Mini Ratna (Category-I) PSU and is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fibre network on exclusive right of way (ROW) along railway track. The company’s segments include telecom services and project work services.

According to Khushi Mistry, research analyst at Bigul, the digital arm of Bonanza Portfolio, the outlook for the railway sector is positive as it is likely to witness several catalysts in the near future on account of upcoming projects, increased government spending, and healthy order books of these companies.

“Investors can use corrections to either accumulate or even make fresh entries,” she told Moneycontrol.

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“As far as railways are concerned, the story is pretty much the same. If somebody picks up rail-related companies there is absolutely no way they can go wrong with the kind of work which is happening in Indian railways currently,” said Sudip Bandopadhyay of Inditrade Capital in an interview with CNBC-TV18.

“Whether it’s a wagon manufacturing companies or the financing companies in the railway side, I think after some correction, there will be decent bets for long term,” he added.

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