RailTel Corporation Received Order Worth Rs. 67.95 Cr Deal from Jammu Smart City Limited

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RailTel Corporation wins order worth Rs. 67.95 Cr from Jammu Smart City Limited for Design, Supply, Installation, Testing, Commissioning and Operations

RailTel Corporation of India Ltd., a Mini Ratna (Category-I) Central Public Sector Enterprise, is an Indian public sector enterprise which provides broadband and VPN services. It was formed in September 2000 with the objective of creating a nationwide broadband, telecom, and multimedia network, and to modernize train control operation and safety system of Indian Railways. Today, RailTel is one of the largest neutral telecom infrastructure providers in the country, owning a pan-India optic fibre network on exclusive right of way (ROW) along railway tracks.

Recently, RailTel has made headlines by securing a substantial order from Jammu Smart City Limited. The order, worth Rs. 67.95 Cr, encompasses the design, supply, installation, testing, commissioning, and operations.

Unpacking the Deal and Market Reaction : RailTel’s Major Breakthrough

This deal marks a significant achievement for RailTel Corporation as it fortifies its presence in the smart city domain. The project will employ cutting-edge technology to digitally upgrade Jammu.

The market has reacted favorably to this news. RailTel Corporation’s market capitalization is a robust ₹ 6,982 Cr, indicating the high level of investor confidence in the company’s growth trajectory. The share price currently stands at ₹ 218.

Financial Results : Unpacking RailTel’s Numbers

Looking at the financial results, RailTel Corporation has shown consistent performance. For the quarter ending in June '23, the net sales/income from operations was Rs 463.46 Cr. The net profit for the same period was Rs 37.46 Cr, and the basic earnings per share (EPS) stood at Rs 1.17.

The company has shown a strong financial position with no debt for the last five years. The company’s revenue witnessed a quarter-on-quarter decline of 32.47%, which is the lowest in the last three years.

Looking Ahead : The Future of RailTel Corporation

The future of RailTel Corporation looks promising. The company is forecasted to grow its earnings and revenue by 18.6% and 20.4% per annum respectively. The Earnings Per Share (EPS) is expected to grow by 18.8%. The Return on Equity (ROE) is forecast to be 14.7% in 3 years.

In terms of stock performance, the target share price for RailTel Corporation Of India Limited (RAILTEL) in 2025 is projected to be between ₹273.4 on the downside and ₹292.5 on the upside. This projection is based on the Discounted Cash Flow (DCF) method, which uses the projected future cash flows of the business.

The deal with Jammu Smart City Limited is anticipated to significantly enhance RailTel Corporation’s revenue in the upcoming quarters. It also positions the company well for securing more such contracts in the future as India continues its journey towards digital transformation.

Moreover, RailTel’s commitment to supporting India’s digital transformation journey, coupled with its track record in successfully executing similar projects in other cities, makes it a strong contender for future smart city projects.

Stay connected for more updates on this exciting development!

Disclaimer: This blog post is for informational purposes only and should not be construed as investment advice.

Keywords: RailTel Corporation, Jammu Smart City Limited, Rs. 67.95 Cr Deal, Design, Supply, Installation, Testing, Commissioning, Operations, Market Capitalization, Share Price, Digital Transformation, Smart City Project

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