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During Friday’s trading session in the Indian stock market, investors will keep a special eye on the shares of Navratna Railway PSU RailTel Corporation of India Ltd. The state-owned telecom and IT infrastructure major has informed the stock exchanges that it has received a new domestic work contract worth ₹164.79 crore (approximately ₹165 crore) from Western Coalfields Limited (WCL). This is the second big work order received by the company this week, due to which the order book of the company has become stronger.
Order worth ₹165 crore received from Western Coalfields: What is the project?
According to information given in the exchange filing, RailTel has been awarded this contract to establish and operate the MPLS VPN (Multiprotocol Label Switching Virtual Private Network – MPLS VPN) network for the Western Coalfields. The entire project will be executed on rental model for a period of 60 months (5 years). The company has been given a target to complete this project by 21 September 2031. This state-of-the-art data network will ensure seamless and secure digital connectivity between various mines, regional offices and headquarters of Western Coalfields.
His Excellency the President holds 23,37,85,038 shares in the company.
RailTel Corporation of India is a Government Navratna Central Public Sector Enterprise (CPSE), functioning directly under the administrative control of the Ministry of Railways. As per the latest shareholding pattern of the company, the President of India (The President of India acting through Ministry of Railways) as a promoter holds 23,37,85,038 equity shares of the company, which constitutes 72.84 percent of the total paid-up equity capital of the company. Strong government promoter base, debt-free balance sheet and frequent new project acquisitions make it a stable infrastructure company.
Many big projects received within a week
The month of August has been excellent for RailTel in terms of project wins. Before Western Coalfields, the company had received a one-year extension of ₹166.80 crore from the Employees’ Provident Fund Organization (EPFO) for its ‘Infrastructure-as-a-Service’ (IaaS) project. Additionally, the company has recently won an Integrated Gate Automation System order worth ₹63 crore from Deendayal Port Authority (Kandla) and an IT project worth ₹119 crore from the Department of Posts. These consecutive order wins are likely to drive further good growth in the company’s revenue and operating profit.
RailTel Share Recent Performance and Outlook
On Thursday, amid weak market trend, RailTel shares closed marginally lower at ₹280.75 on NSE. Currently the total market capitalization of the company is approximately ₹9,024 crore. On long-term charts the company has a 52-week high of ₹412.90 and low of ₹245.00. This Navratna stock remains on the radar of market experts on the basis of its Optic Fiber Network (OFC) spread over 62,000 route kilometers across the country, role in railway modernization, data centers and cyber security operations.