Railtel Corporation’s share price opened at ₹478.90 per share on the NSE, rising fast to an intraday high of ₹502.65. That steep rise of nearly 7% in the first half of the trading session happened amidst a recent order won by the Uttar Pradesh Police Recruitment and Promotion Board valued at ₹52.66 crore.
What is Behind the Railtel Share Price Rally?
In fact, Railtel has had a hot run of late after securing a massive order from the Uttar Pradesh Police Recruitment and Promotion Board. This news of the order, valued at ₹52.66 crore has already set many investors’ pulses racing, which has led to the stock gaining sharply. This order is seen as a booster to attrition confidence in its growth prospects.
Experts in the stock market have claimed that Railtel Corporation has done relatively well its peer group companies, which shows in their Q1 FY25 results. It posted a net profit of ₹49 crore in this June quarter, up by 25 percent from ₹39 crore for the corresponding quarter of the previous year. Other than this, the revenue from operations on a year-over-year basis increased by 19.4 per cent to ₹558 crores from ₹476 crores in Q1 FY24.
These strong financial results, coupled with the recent order win, seem to have built optimism toward Railtel’s future outlook. Stock market experts say one may continue to hold the stock for near-term targets of ₹525 and ₹550.
Railtel Share Price Target Expert Opinions
The Head of Research at Profitmart Securities, Avinash Gorakshkar, said that the increased price in Railtel’s share could majorly be attributed to the new order from the Uttar Pradesh Police Recruitment and Promotion Board. He went on to add that a better-than-anticipated set of Q1 FY25 results for Railtel boosted investor sentiment.
Railtel has sideways to bullish chart characteristics and can be considered for positional holding in the near term, says Sumeet Bagadia, Executive Director at Choice Broking. The analyst recommends that current investors maintain a stop loss of ₹470 and that fresh investors buy at the current market price for targets of ₹525 and ₹550 in the short run.
Recent Performance of Railtel and Market Comparison
Though its recent surge has been remarkable, RailTel stock has been highly volatile during the past month. It fell 1.89 per cent in the last four trading days and has erased about 4 per cent of investors’ wealth in the past one month. However, it gave a strong return of over 22 per cent in the last six months and appreciated an impressive 312 per cent in five years.
In comparison, the benchmark Nifty 50 index has gained 1 percent in the last five days and 1.5 percent in the last month. In the last six months, the Nifty 50 has managed a 12 percent return, while in the last five years, it has risen by 130 percent. Railtel’s long-term performance completely dominates the benchmark Nifty 50’s performance, especially due to its hefty five-year growth.
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Frequently Asked Questions
Q: What are the factors behind the rise in Railtel’s share price today?
A: Railtel’s share price gained ground following a recent order win worth ₹52.66 crore from the Uttar Pradesh Police Recruitment and Promotion Board. The company is riding high on its strong financial results for Q1 FY25.
Q: What could be the short-term target for the Railtel share price?
A: Experts believe near term targets are ₹525 and ₹550 with a recommended stop loss at ₹470.
Q: How Railtel performed in the last six months?
A: Railtel’s stock has given a return of more than 22% in the last six months.
Q: Is Railtel a good buy now?
A: According to market experts, Railtel is a good buy at the current market price for short-term gains, having targets of ₹525 and ₹550.
Q: How has Railtel’s performance been against the Nifty 50?
A: Obviously, Railtel has performed much better than Nifty 50 in the long run, as one can note from its five-year return of 312% against the rise of 130% by the Nifty 50.
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