Shares of multibagger RailTel Corporation of India have lost steam in the short term, leaving investors guessing whether they should buy, sell or hold the railway stock. The multibagger stock, which surged 302% in two years and surged 220% in three years is down 23% in three months. The scrip has also lost 9% in a month. However, RailTel shares have pulled back in a week with gain of 6.24%.
RailTel shares slipped 2.51% in the current session against the previous close of Rs 438.75 on BSE. Market cap of the firm slipped to Rs 13,757 crore. Total 3.89 lakh shares of the firm changed hands amounting to a turnover of Rs 17 crore.
The multibagger stock has risen 80.17 per cent in a year and gained 302 per cent in two years. The stock fell to a 52-week low of Rs 202.45 on October 26, 2023 and rose to a record high of Rs 618 on July 12, 2024. The stock has fallen 30.56% from its 52 week high.
The stock has a one-year beta of 1.5, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of RailTel stands at 48.5, signaling the stock is neither overbought nor oversold on charts.
Analysts are mostly bullish on the prospects of the stock.
Kushal Gandhi, Technical Analyst, StoxBox has assigned a price target of Rs 500 to the RVNL stock.
“The price action of RailTel has corrected by 37% from its record high of Rs 617. The recent corrective rally has found immediate support at the 200-day moving average and is now working to limit further drawdowns. Notably, yesterday’s trading session recorded the highest quarter volume, accompanied by positive momentum, suggesting that previously dormant buyers are gradually becoming active—a promising sign. Additionally, the relative strength index on the daily timeframe has begun to reverse from its oversold territory, indicating an increase in price momentum. Given the favourable risk-to-reward ratio, we recommend buying RailTel with a target price of Rs 500 and maintaining a stop loss at Rs 400 for the medium term,” said Gandhi.
Jigar S Patel, Senior Manager – Equity Research at Anand Rathi said, “Support will be at Rs 410 and resistance at Rs 446. A decisive move above the Rs 446 level may trigger a further upside of Rs 480. The expected trading range will be between Rs 410 and Rs 480 for the short-term.”
AR Ramachandran, independent Sebi registered analyst siad, “Railtel stock price is slightly bullish on the Daily charts with strong support at 41.2 A Daily close above the resistance of Rs 446 could lead to a target of Rs 480 in the near term.”
RailTel reported a 25.2% year-on-year (YoY) rise in net profit at Rs 48.7 crore for the first quarter ended June 30, 2024 against a net profit of Rs 38.9 crore. Revenue from operations climbed 19.4% to Rs 558.1 crore against Rs 467.6 crore in the corresponding period of the preceding fiscal. EBITDA rose 14.8% to Rs 103.4 crore in the first quarter of this fiscal against Rs 90.1 crore in the year-ago period.
About the company
RailTel Corporation is a Navratna PSU and is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network on exclusive right of way (ROW) along railway track. The company’s segments include telecom services and project work services.
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