RailTel Corporation of India Ltd. shares extended their gains on Tuesday open, after the public sector undertaking (PSU) company announced it had secured a work order valued at ₹24.5 Crore from Haryana State Electronics Development Corp. Ltd.
The contract would be executed by Dec. 31, 2029 and pertains to “comprehensive annual maintenance.”
This is latest among a string of order announcements from the Indian Railways-owned telecommunications company.
On Saturday, RailTel announced getting a 4G contract from South Central Railways for ₹13.34 Crore and a Multiprotocol Label Switching (MPLS) contract from the Employees Provident Fund Organisation (EPFO) for over ₹16.2 Crore.
Last Tuesday, the PSU had also informed the bourses that it had bagged a ₹10.6 Crore order from Gail India.
Railtel shares traded 0.4% higher at ₹444.15 at Tuesday, bringing their one-month surge to 12%.
The stock has attracted retail investors’ interest in recent years as they seek opportunities in the wider railway sector.
Much of the euphoria around railway stocks comes from Modi government’s aim of revitalizing and modernizing Indian Railways, including with introduction of the Vande Bharat series of trains.
As the order-books and government’s focus drives up share prices, skeptical analysts wonder whether the markets are correctly pricing the stocks.
RailTel, for example, is currently trading at a P/E ratio of above 54 — that is, after falling significantly from its 52-week high of ₹617.80.
The news of the Haryana order as well as the previous orders were first published as a filing recap on Dzambhala Pro ahead of their impact on share price movement.