RailTel Share Price Jumps 4% – Here’s Why It’s Defying the Market Crash
You know how it goes – when the market tanks, pretty much everything turns red. But here’s RailTel, doing its own thing with a solid 4% jump today. Kinda makes you wonder what’s going on, right? Let me break it down for you.
Wait, What’s Happening With RailTel?
So at 11:30 AM, while the Nifty was busy losing 0.8%, RailTel shares were sitting pretty at ₹385.50 – up 1.2%. And get this – it actually hit ₹398 earlier. That’s its highest in like three weeks. Meanwhile, other railway stocks like IRFC and IRCTC were down 2-3%. Weird, huh?
Here’s the thing: RailTel just bagged a ₹107.4 crore deal from Madhya Pradesh Police. And this comes right after that ₹139.5 crore order from Kerala last month. Orders are stacking up, and the market’s noticing.
The MP Police Deal – Why It’s a Big Deal
Okay, so ₹107 crore might not sound huge for a company that did ₹1,800 crore last year. But look closer:
- They’re building this secure network connecting 900+ police offices across MP
- Project timeline? 18 months. But here’s the sweet part – they’ll get maintenance money for 3.5 years after that
- It’s not just about railways anymore – they’re getting government clients from different sectors
Honestly, the maintenance revenue is what excites me. That’s where the real margins are.
What the Analysts Are Saying
ICICI Securities is still bullish with a ₹450 target. And get this – they say RailTel’s sitting on a ₹3,500 crore order pipeline. That includes:
- ₹1,200 crore from BharatNet Phase 3
- Another ₹800 crore for modernizing railway fiber networks
But here’s the funny part – retail investors are going nuts. Trading volumes today? 1.8 million shares versus the usual 700,000. The Reddit crowd’s debating whether this is RailTel’s moment to shine after years of being that boring PSU stock.
The Bigger Picture – Who’s Losing Here?
You know what’s interesting? Google searches for “If everyone’s making money, who’s losing?” shot up 300% this week. In RailTel’s case:
- Short sellers got burned – 0.3% of equity was shorted before this rally
- And those FOMO buyers jumping in at ₹395? They’re already underwater
As Ramesh Damani put it – “In corrections, money flows from weak hands to strong.” RailTel’s up 12% this year while Nifty’s down 3%. Says something, doesn’t it?
What’s Next for RailTel?
Management’s guiding for 18-20% revenue growth this year. Margins should stay healthy at 22-24%. And keep an eye on those BharatNet orders – decision expected by December.
But it’s not all sunshine:
- If railway spending slows down, that’s trouble (60% of their business)
- Private players are getting aggressive in fiber leasing
- Some projects might have tight margins if bidding gets too competitive
Final Thoughts
Look, one order doesn’t make a trend. But RailTel’s showing it can deliver consistently. For risk-averse folks looking at PSU stocks, this might be one to watch. Just saying – maybe talk to your advisor before jumping in.
Want to dig deeper? Check out:
- Zerodha Pulse for market trends
- Samco’s research for technical views
Anyway, that’s my take. What do you think – is RailTel finally getting its moment, or is this just a temporary blip?
Source: Livemint – Markets