10% Dividend: Miniratna Railway PSU Stock RailTel Jumps On Securing Order Worth Rs 78 Cr From BCCL

RailTel Corporation of India Ltd witnessed a surge in its stock price on Thursday following the announcement of a Rs 78 crore order from Bharat Coking Coal Ltd (BCCL). The state-run firm's shares climbed 7.20% to reach a day high of Rs 434.15 on the National Stock Exchange (NSE).

The stock saw heightened activity on the BSE, with around 4.34 lakh shares traded during the session, surpassing the two-week average volume of 1.25 lakh shares. The turnover on the stock was recorded at Rs 18.51 crore, giving the company a market capitalization of Rs 13,801.96 crore.

Work Order
RailTel, a Mini Ratna (Category-1) Public Sector Undertaking (PSU), confirmed the development in a regulatory filing with the BSE. "This is to inform that RailTel Corporation of India Ltd has received the work order from Bharat Coking Coal Ltd for works amounting to ₹78,43,30,164 (including tax)," the company stated.

Technical Indicators
From a technical standpoint, RailTel's stock is exhibiting bullish trends. The scrip is currently trading above its 5-day, 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs), signalling short-term strength. However, it remains below its 100-day, 150-day, and 200-day SMAs, suggesting room for long-term improvement. The 14-day Relative Strength Index (RSI) stood at 58.50, indicating a neutral to slightly bullish sentiment as it remains comfortably away from overbought or oversold zones.

Financial Performance
As per BSE data, RailTel's stock holds a price-to-equity (P/E) ratio of 53.06 and a price-to-book (P/B) value of 7.33. The company's earnings per share (EPS) stand at Rs 8.13, with a return on equity (RoE) of 13.82%.

RailTel's financial performance in the September 2024 quarter further boosts investor confidence. The company's net profit rose by 7% year-on-year to Rs 73 crore, compared to Rs 68 crore in the corresponding period last year. Revenue witnessed a substantial 41% increase, reaching Rs 843 crore in Q2 FY24, up from Rs 599 crore in Q2 FY23. Operating EBITDA also climbed 2% to Rs 129 crore, though the EBITDA margin declined to 15.3% from 21% in the previous year's comparable quarter.

Market Performance
RailTel is a prominent information and communications technology (ICT) provider and one of the largest neutral telecom infrastructure entities in India. With a pan-India optic fibre network, the PSU is well-positioned to capitalize on the country's growing ICT and telecom needs. As of September 2024, the government holds a 72.84% stake in RailTel.

On the National Stock Exchange (NSE), RailTel's shares were trading with gains of nearly 4.50% at Rs 422.90 per share as of 12:30 pm. The stock has delivered a 20% return over the past 12 months.