RailTel Corporation share price in focus: RailTel Corporation’s share price gained momentum during the mid-trading session on Thursday, June 5, rising 4.6% to hit a five-month high of ₹461.75 apiece after the company announced an order from the Motor Vehicles Department (MVD), Maharashtra.
The company informed investors in a regulatory filing today that it had received a Letter of Intent (LOI) from the Motor Vehicles Department, Maharashtra, for the design, implementation, operation, and maintenance of an Intelligent Traffic Management System (ITMS) at various blackspots and vulnerable spots in the Vidarbha Circle for a period of 10 years, worth ₹274.40 crore.
This was the company’s second order win in less than a week, as on May 31, it received a work order from Mahanadi Coalfields Limited for provisioning an Internet leased line for different areas of MCL to stream CCTV, worth ₹10.59 crore, and it also secured ₹25 crore worth of orders from the Andhra Pradesh Police.
Amid a series of order wins and strong March quarter results, the stock has maintained steady upward momentum on Dalal Street, regaining the momentum it lost during the recent correction.
Railway stocks had previously experienced a sustained bull run from May 2023 to July 2024, which drove their valuations to unsustainable levels.
This, combined with a slowdown in order inflows, led investors to retreat from the segment, resulting in sharp corrections from record highs. However, the recent pickup in order flow has renewed investor interest, attracting them back into the railway segment alongside the continuing momentum in defense stocks.
