Railtel Corporation of India has received a new project of Rs 37.18 crore from Madhya Pradesh State Electronics Development Corporation. Following this news, the company’s shares saw a rise of about 3% on Monday.
Decline after boom in shares
- RailTel’s stock opened at Rs 286.65 on BSE.
- During the day, the highest level of Rs 289.60, which reflects a gain of about 3%.
- However, after this, the stock declined due to profits and it came to Rs 277.20 while closing the market.
RailTel is getting big projects continuously
RailTel has recently received another project of Rs 26.37 crore from Cuttack Development Authority.
Apart from this, the company also received work of Rs 56.65 crore from South Central Railway last week and Rs 111.42 crore under another project.
Due to these major contracts, the company’s revenue and growth are expected to improve.
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Financial status: Net profit gained 5%
RailTel’s financial performance was strong in the December quarter.
- Net Profit – Growed 5% to Rs 65.05 crore.
- There is a possibility of continuing growth in the quarters coming from the company’s new projects.
How was the performance in the stock market?
RailTel’s shares have also been affected by the recession in the market.
- The stock has fallen 39% in the last one year.
- During the same period, the Sensex index declined by just 0.98%.
- 52-week high-618 rupees
- 52-week low-265.30 rupees
However, the company is constantly getting large projects, which has increased the possibility of recovery in its long term.
