RailTel Corporation of India share price surged 20 per cent to hit the upper circuit at Rs 145.65 apiece on BSE on Monday.
RailTel Corporation of India share price surged 20 per cent to hit the upper circuit at Rs 145.65 apiece on BSE on Monday. The shares made a stock market debut last week on Friday, with an 11.28 per cent listing premium from its issue price of Rs 93-94 per share. With today’s gain, RailTel stock price is now up 55 per cent over its IPO price. After Indian Railway Finance Corporation (IRFC), RailTel Corporation of India was the second Ministry of Railway subsidiary to make a stock market debut in the calendar year 2021. During the three-day IPO process, the RailTel issue saw a subscription of 42.39 times.
Fundamentally, RailTel Corporation of India is a good company, says Vishal Wagh, Head of Research, Bonanza Portfolio Ltd. Keeping upcoming development in mind, the future earning growth in the company looks very strong. “Those who have got shares through IPO need to hold with stop loss below 120 levels and keep trailing it and ride the move,” Wagh said. While on the higher side, Wagh sees a further up move of 15-20 per cent. On listing day, RailTel stock started trading at Rs 109 on the National Stock Exchange.
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So far in the intraday session, a total of 61.77 lakh shares have traded on BSE. While 4.42 crore shares exchanged hands on the National Stock Exchange (NSE) so far in the session on Monday. AR Ramachandran, Co-founder & Trainer, Tips2Trade, told Financial Express Online, that with current positive sentiment regarding the privatisation of PSU companies and decent fundamentals, Railtel Corporation of India has bucked the slightly bearish market to surge higher since listing. “Technically, Railtel Corporation of India stock looks strong but any upside move up to Rs 153-163 should be used by investors to book profits in the near term,” Ramachandran added.
RailTel, a Mini Ratna (Category-1) state-owned firm, is one of the largest neutral telecom infrastructure providers in India. Railtel is a debt-free company despite being into capital intensive business, which offers an edge, says Vikas Jain, Senior Research Analyst at Reliance Securities. It has a huge opportunity emanating from the government’s railway transformation agenda and programme to connect 6 lakh villages in 1,000 days near railway stations. Jain added saying that after a stellar listing, there was fresh orders announcement of 105.82 crore on February 27, by the Ministry of Railways with the tenure for completion of 18 months. “We continue to remain positive on the stock in the long term,” he added.
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