Shares of RailTel Corp. of India surged over 11% after it got a work order from Navodaya Vidyalaya Samiti for supply and implementation of integrated infrastructure and information technology solutions.
The size of the contract is Rs 162.73 crore and is expected to be completed 180 days from the date of issue of signing of the agreement, an exchange filing said.
The stock surged even as the company reported a sequential fall in its net profit for the December quarter. The neutral telecom infrastructure provider declared its third quarter results on Wednesday after market hours.
RailTel Corp. Q3 FY24 Key Highlights (Consolidated, QoQ)
Revenue up 11.5% at Rs 668.4 crore.
Ebitda up 3% at Rs 118.8 crore.
Margin narrows 147 bps to 17.76%.
Net profit down 8.9% at Rs 62.1 crore.
Shares of RailTel jumped 11.17%, the highest level since Jan. 23, before paring gains to trade 11% higher at 10:08 a.m. This compares to a 0.33% decline in the NSE Nifty 50.
The stock has risen 254.24% in the past 12 months. Total traded volume so far in the day stood at 3.9 times its 30-day average. The relative strength index was at 69.82.
Of the three analysts tracking the company, two maintain a 'buy' rating and one suggests a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 41.9%.
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