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RailTel Shares Jumps 13% After Getting New Order From South Central Railway

21 June 20243 mins read by Angel One
Railtel Corporation of India surged by 13% moving closer to its 52-week high after the company bagged a new order from South Central Railway.
RailTel Shares Jumps 13% After Getting New Order From South Central Railway
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RailTel was incorporated in 2000, with the objective of creating nationwide broadband and VPN services, telecom, and multimedia networks, to modernize the train control operation and safety system of Indian Railways. It is a “Miniratna” PSE of the Government of India. At present, RailTel’s network passes through around 6,000 stations across the country, covering all major commercial centers. 

RailTel stock surged by 13% on order win

RailTel Corporation of India experienced a notable 13% surge on the BSE during intra-day trading following the announcement of a significant development. The company revealed that it has secured a work order from South Central Railway for Telecommunication works, specifically for the provision of IP-MPLS in 523RKM of the Secunderabad division, valued at Rs 20.22 crore. This recent achievement adds to RailTel’s successful month, during which it has garnered total orders amounting to Rs 137 crore. Among these, a substantial Rs 81.45 crore contract from National Informatics Centre Services Incorporated stands out. This contract involves the supply, installation, configuration, commissioning, and integration of ICT infrastructure, along with operation and maintenance services in compliance with the SLA.

RailTel’s ability to secure such significant orders underscores its strong position in the telecommunications and infrastructure sector. These developments are likely to contribute positively to the company’s growth trajectory and market standing in the coming periods.

RailTel Stock performance

So far in the month of June, the stock of RailTel Corporation of India is up by more than 15%. The stock has almost quadrupled in the past year, It currently trades at Rs.482.20 a piece up by 11% from its previous day’s closing price.

Conclusion: RailTel Corporation of India’s 13% surge on the BSE, driven by substantial contract wins like the recent one from South Central Railway, reflects its growing prominence in telecommunications. These achievements highlight RailTel’s capability to deliver quality services, positioning it as a key player in India’s digital infrastructure landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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