Mumbai: Shares of RailTel Corporation of India Ltd surged sharply on Wednesday, rising 18.94 percent to Rs 338.23. The stock touched an intraday high of Rs 339.85, compared to the previous close of Rs 284.38 on the National Stock Exchange.
The stock opened at Rs 300.03 and remained strong throughout the session, supported by positive news flow and strong investor buying.
Rs 608 Crore Order Wins
The rally came after RailTel announced fresh order wins worth around Rs 608 crore. The company received Letters of Acceptance (LoAs) from Rail Vikas Nigam Limited for two major infrastructure projects.
The first contract, worth Rs 309.27 crore, involves work on tunnels T-1 to T-7 covering about 42.7 km. The second project, valued at Rs 255.27 crore, covers tunnels T-8 to T-11 and spans 36 km.
Scope Of Work
Both projects include supply, installation, testing, and commissioning of integrated communication systems. These include VHF systems, CCTV, public address systems, and emergency call facilities.
All projects are domestic and are expected to be completed by April 2028, improving long-term revenue visibility.
Additional Order Boost
Apart from these projects, RailTel also secured another order worth Rs 43.96 crore from the Uttar Pradesh Police Recruitment and Promotion Board. This project is related to providing support services during recruitment exams.
The company confirmed that none of the orders involve related-party transactions.
Technical Indicators
On the technical side, RailTel’s Relative Strength Index (RSI) stands at 51.6, indicating neutral momentum. The stock is currently trading above five out of eight simple moving averages (SMAs).
However, it is still below key long-term averages like the 100-day, 150-day, and 200-day SMAs, suggesting mixed trend signals.
The strong order inflow is seen as a positive trigger for RailTel. It strengthens the company’s position in telecom infrastructure and government projects, while also boosting investor confidence.
Disclaimer: This article by The Free Press Journal is for informational purposes only and not investment advice. Readers should consult financial advisors before investing. Market investments are subject to risks, including possible loss of capital.
