Thursday, March 23, 2023
HomeStock MarketIndian Stock MarketRailTel Corp races 5% on bagging Rs 287.57-crore contract

RailTel Corp races 5% on bagging Rs 287.57-crore contract

RailTel Corporation of India’s shares rose 5% on March 15 after the business received a Rs 287.57 crore order.

The work order from the Center for Development of Advanced Computing is for the supply, installation, integration, testing, and commissioning of IT infrastructure in greenfield data centers in New Delhi and Bengaluru, as well as training and support, the business said in an exchange filing.

According to Railtel, the order must be completed within 300 days after the work order date.

RailTel Corp shares were trading 3.3 percent higher on the BSE at Rs 108.60 at 9:17 a.m.

According to ICICI Securities, Railtel Corp. has observed increasing competition intensity in the project business, both from government organizations and private enterprises, leading the company to adjust its approach to pursuing volume-based contracts rather than margin-based ones before. According to the brokerage company, this might assist in increasing absolute Earnings Before Interest and Tax (EBIT) in the project industry.

According to the brokerage business, Railtel has an edge in Indian Railways owing to its unique access to railway infrastructure such as Right of Way (ROW) spanning 67k-Rkm lines, space for building up towers, and so on. Yet, opening up railroad infrastructure to private firms should improve competitiveness. But, Railtel feels it is in a great position owing to existing partnerships and the lead time for rivals to invest capex, according to the brokerage company.

News Desk
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