Shares of RailTel Corporation of India Ltd rose sharply in early trade on Wednesday after the company declared that it has received a work order from the Centre for Development of Advanced Computing (C-DAC) worth around Rs 288 crore. RailTel Corp, in an exchange filing, said, “This is to inform that RailTel Corporation of India has received the work order from Centre for Development of Advanced Computing (C-DAC) for Supply, Installation, Integration, Testing and Commissioning of IT infrastructure in green field Data Centre at New Delhi and Bengaluru along with Training and Support amounting to Rs 287.57 crore (including taxes).”
The C-DAC order has to be completed within 300 days from the work order date, i.e March 14, the BSE filing mentioned. RailTel also added that the order would not fall under related party transactions.
The stock jumped 4.71 per cent to hit a day high of Rs 110.05 over its previous close of Rs 105.10. Around 39,000 shares changed hands today on BSE, which was lower than the two-week average volume of 90,000 shares. Turnover on the counter stood at Rs 42.17 lakh, commanding a market capitalisation (m-cap) of Rs 3,485.39 crore.
There were 91,312 sell orders today against buy orders worth 40,514 shares.
At today’s high of Rs 110.05, the counter slipped 25.99 per cent from its one-year high level of Rs 148.70, touched on November 28, 2022. That said, the stock traded 31.01 per cent higher from its 52-week low of Rs 84, hit on March 31 last year.
In a year, the counter has lost 14.85 per cent and slipped 3.21 per cent in the past month.
“RailTel Corp has strong resistance at Rs 111 on the daily charts. A close above this level could lead to targets of Rs 117-124 in the near term. Support will be at Rs 104,” said AR Ramachandran from Tips2trades.
The stock was last seen trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 43.29. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 20.33.
The scrip has an average target price of Rs 145, Trendlyne data showed, suggesting a potential upside of 33.64 per cent. The scrip has a one-year beta of 0.96, indicating average volatility on the counter.
RailTel Corp, a Mini Ratna (Category-1) PSU is an information and communications technology (ICT) provider and one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network. As of December 31, 2022, the government holds a 72.84 per cent stake in the company.
The company’s consolidated net profit declined 51.60 per cent to Rs 31.95 crore despite an 8.80 per cent rise in net sales, at Rs 454.32 crore, in December 2022-23 (Q3 FY23) against Q3 FY22.
Meanwhile, Indian equity benchmarks traded higher in morning deals, led by gains metals, banks, financial, pharma and consumer durable shares.
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