Railtel Corporation rises 8%, extends gain for third straight day on ₹352-crore order win

Railtel Corporation of India Ltd shares jumped 8% on Monday after the company announced receiving an order worth ₹352 crore in Mumbai.

In a filing to the stock exchanges on March 17, Railtel Corporation said that the Municipal Corporation of Greater Mumbai has awarded a major work order for the supply, installation, testing, commissioning as well as operations and maintenance (O&M) of HMIS for the Health Department of BMC (Brihanmumbai Municipal Corporation).

The state-run company has been selected by Municipal Corporation of Greater Mumbai through a competitive bid process for the execution and maintenance of the said project across the health units of BMC in Mumbai, the company informed the stock exchanges.

The project will be executed by Railtel Corporation by March 14, 2030, and the exact size of the order stands at ₹351 crores, excluding the Goods and Services Tax (GST).

RailTel Corporation of India has won three work orders in a week, with a cumulative order value of over ₹596 crore.

After the announcement shares of Railtel Corporation of India Ltd gained as much as 7.96% to an intraday high of ₹378.7 apiece on the NSE. However, the stock pared some gains to trade at ₹356.35 per piece, up 0.9%, on the NSE at 15:15 pm.

The railway stock has gained nearly 23% in the last four sessions since March 13. Shares of the company have jumped 18% in three months. The railway stock has surged 17.62% to ₹354 apiece on NSE in the last three months from ₹300.95 apiece on December 18, 2023.

Last week, Railtel Corporation won a work order worth ₹130.6 crore on March 16, from the State Project Director (SPD), Bihar Education Project Council, for the supply of teaching learning material for class 1 to class 5.

It won another order worth ₹113.46 crore on March 14 from Odisha Computer Application Centre (OCAC) for the establishment of an IP-MPLS Network Connectivity in Odisha under OdishaNet Phase 1.0.