Navratna PSU stock: RailTel secures ₹10.92 crore order from Northern Railways, shares open in green

Stock Market Today: RailTel Corporation of India Ltd (RailTel) has secured a significant work order of ₹10,92,47,304 from Northern Railways for a Railway Telecom Project, as disclosed in a regulatory filing on September 4. This order comes after RailTel's recent elevation to Navratna status, a prestigious designation for top-performing public sector enterprises in India.

On September 5, Railtel's share price opened 0.86 percent higher at ₹498.55 on the BSE at 9:29 am.

The announcement sparked a surge in investor interest, and RailTel's shares opened strong on the National Stock Exchange (NSE), trading at ₹497.60, slightly down from its previous closing of ₹497.75.

The multibagger stock has risen over 113 percent in the last 12 months. Market analysts have attributed this positive momentum to RailTel's newly acquired Navratna status.

Avinash Gorakshkar, Head of Research at Profitmart Securities, offered insight into the stock's performance, stating, “The current rally in this railway PSU stock can be attributed to the Navratna status being given to the company last week. However, the PSU railway stocks are available at a discounted price, and they have remained almost non-participant in the recent bull market. So, this positive trigger has attracted buyers' interest during the morning session.”

Railway PSU prepares for international expansion 

Sanjai Kumar, Chairman and Managing Director, RailTel, stated that the company has initiated preparations to expand its operations internationally after being awarded Navratna status by the Indian government, as per an NDTV Profits report.

India categorises its public sector undertakings into three groups: Maharatna, Navratna, and Miniratna. Companies previously recognised as Miniratna Category I can earn Navratna status based on exceptional financial and market performance, as per the report.

Speaking to NDTV Profit, Kumar highlighted that this new status will strengthen RailTel’s position in the market and enhance its appeal to investors, buyers, and customers.

Besides pursuing international business ventures, the upgrade brings several other advantages for the company.

“We can make more investments when we compare with the previous status. We can now open offices abroad as well. We have recently started some foreign business efforts,” Kumar stated, as quoted by NDTV Profit.

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