10% Dividend Declared: Multibagger Railway PSU To Trade Ex-Date On Nov 6, Q2 Revenue Up 41%

BSE smallcap Navratna public sector undertaking (PSU) RailTel Corporation of India Ltd shares saw the gain of 268% in last 2-years and declined 14% in last 3-months. The PSU will trade ex-dividend on November 6, 2024 for 10% dividend. The company on October 28, 2024 declared its profit at Rs 72.6 crore for the quarter ended September 30, 2024, up 7% YoY as against the profit of Rs 68.2 crore in the corresponding quarter of last year, as per the BSE filing.

Last trading price of RailTel Corporation shares on Bombay Stock Exchange (BSE) as on November 1, 2024 stood at Rs 421.70. The company has a market cap of Rs 13,533.97 crore. More details below:

RailTel Corporation Recommends Dividend, Sets Record Date

According to the October 28, 2024 BSE filing of the Navratna PSU, "pursuant to Regulation 30 and 42 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Board of Directors have declared an interim dividend at the rate of 10% of paid-up share capital (Rs.1/- per share). Further, the Board of Directors has also approved Wednesday, 06 th November 2024 as "Record Date" for the purpose of payment of interim dividend of FY 2024-25."

RailTel Corporation Shares Performance

The 52-week high price of RailTel Corporation Ltd shares on BSE stood at Rs 618.00 and 52-week low price is Rs 225.75 per share, respectively. RailTel Corporation shares delivered 91% return in last 1-year and gained 242% in last 3-years. RailTel Corporation stock offered 19% returns so far this year.

RailTel Corporation Q2

The company declared a jump of 41% YoY in its revenue to Rs 843.5 crore for the quarter ended September 30, 2024. Meanwhile, the company's operating income, or earnings before interest, taxes, depreciation, and amortisation, surged 1% to Rs 129.3 crore.

Order Win

According to the BSE filing issued as on October 24, 2024, "this is to inform that RailTel Corporation of India Ltd. ("the Company") has received the work order from Home Department, Government Of Gujarat for Project amounting to Rs. 1,44,88,48,888 (Including Tax)."

RailTel Corporation of India Dividend History

It declared 8 dividends since March 31, 2021. In last 1-year, RailTel Corporation of India recommended an equity dividend amounting to Rs 2.85 per share.

Buy Call

Leading brokerage firm StoxBox said, "the relative strength index on the daily timeframe has begun to reverse from its oversold territory, indicating an increase in price momentum. Given the favourable risk-to-reward ratio, we recommend buying RailTel with a target price of Rs 500 and maintaining a stop loss at Rs 400 for the medium term."

On the other hand, Brokerage firm HDFC Securities on October 18, 2024 assigned buy call to RailTel shares with target price of Rs 458 per share for a target period of 1 0 days. The brokerage urged to keep the stop loss at Rs 403 apiece.

About

RailTel Corporation a "Mini Ratna (Category-I)" PSU is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optical fiber network. RailTel is committed to bring cutting edge technology and offer innovative services to the Indian Telecom market. RailTel is in the forefront in providing nationwide Broadband Telecom & Multimedia Network in all parts of the country in addition to modernization of Train operations and administration network systems, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.