24 Mar , 2025 By : Debdeep Gupta
Shares of RailTel Corporation of India surged 10 percent to Rs 339 on March 24 after securing a Rs 25.15 crore order from Hindustan Petroleum Corporation.
Despite the rally, the railway PSU’s stock has struggled over the past six months, tumbling more than 28 percent, compared to a 9 percent decline in the benchmark Nifty 50 index. At its record high, the stock had soared over 6.5 times its IPO price of Rs 94. However, it later plunged to a recent low of Rs 265 on March 3, marking a steep 57 percent drop from its peak.
The Rs 25.15 crore order (excluding tax) is a five-year contract for the renewal of existing MPLS and ILL links, along with proposed new connections that may be added over the period, subject to feasibility. The contract is set to run from April 1, 2025, to March 31, 2030.
This follows RailTel’s recent announcement of a work order from the Ministry of Defence for OFC Laying Work, valued at Rs 16.89 crore (including tax).
In Q3FY25, RailTel posted a 5 percent year-on-year rise in net profit, reaching Rs 65 crore. Revenue climbed 15 percent YoY to Rs 768 crore. However, EBITDA declined 6.6 percent YoY to Rs 121 crore, down from Rs 129.7 crore in the year-ago period. This led to an EBITDA margin contraction to 15.8 percent from 19.4 percent in Q3FY24.
Despite its recent movements, analyst coverage on RailTel remains sparse. Both ICICI Securities and Investec have a "sell" recommendation on the stock.
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