RailTel shares cross Rs 200 mark for first time; can they hold onto gains?

Shares of RailTel Corporation of India Ltd crossed the Rs 200 mark for the first time today amid modest gains in the broader market. RailTel Corp shares gained 6.07 per cent to a record high of Rs 202.40 against the previous close of Rs 190.80 on BSE. Market cap of the firm rose to Rs 6134.74 crore. Total 11.57 lakh shares of the firm changed hands amounting to a turnover of Rs 22.67 crore. At 2:49 pm, the Railtel stock was trading 1.07% higher at Rs 192.85 on BSE.

The multibagger stock has zoomed 101 per cent in a year and risen 50.75 per cent this year. The stock hit a 52-week low of Rs 93.95 on July 29, 2022.

In terms of technicals, the relative strength index (RSI) of RailTel stands at 69.1, signaling neither the stock is overbought nor oversold. The stock has a one-year beta of 0.9, indicating low volatility during the period. RailTel stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Abhijeet from Tips2trades said, “Railtel Corp looks bearish and has a strong resistance at Rs 206.45 on the daily charts. A daily close below support of Rs 190 could lead to a target of Rs 164 in the near term."

Q1 earnings

The firm reported a 48.29% rise in Q1 net profit. Q1 consolidated net profit rose to Rs 38.4 crore against a net profit of Rs 25.9 crore in the corresponding quarter last year. Consolidated revenue from operations jumped 25.34% to Rs 482.7 crore in Q1 against Rs 385.1 crore in the corresponding period of the preceding fiscal. Operating profit climbed to Rs 74.2 crore in Q1 against Rs 67 crore in the June quarter of the last fiscal.

About the company

RailTel Corporation is a Mini Ratna (Category-I) PSU and is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network on exclusive right of way (ROW) along railway track. The company's segments include telecom services and project work services.

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