RailTel share price skyrockets 10% post Q4 results: Is there more steam left in the multibagger railway stock?

Stock Market Today: RailTel share price gained more than 10% today, May 2, post Q4 results that were declared on Thursday, May 1. Since yesterday was a stock market holiday, the stock reacted to the results on Friday. The multibagger railway stock RailTel Corporation of India reported good Q4 results.

RailTel Q4 Results

On Thursday, May 1, RailTel Corporation of India declared its January-March quarter results for fiscal 2024-25 (Q4FY25), posting a 46.3 per cent increase in net profit to ₹113.4 crore, up from ₹77.53 crore during the same time the previous year. Operating revenue for the Navratna public sector undertaking (PSU) also showed a marked improvement, rising 57% year-on-year to ₹1,308.28 crore in the fourth quarter of FY25 from ₹832.7 crore in the same period last year.

RailTel Corporation's revenue from operations jumped 57% to ₹1,308.28 crore, up from ₹832.7 crore in the same period last year. The railway PSU’s earnings before interest, tax, depreciation and amortisation (EBITDA) also saw a healthy growth of 53.8% to ₹180 crore, although the EBITDA margin narrowed slightly to 13.73%, down 27 basis points from 14% in the year-ago quarter. Despite stellar numbers, the stock is currently locked in a consolidation phase, trading within a broad range of ₹275– ₹332. Analysts believe this base-building process may continue for a while, with no significant breakout expected in the near term. 

Investors are advised to watch for strong volumes and a decisive move beyond the range before taking fresh positions, said Anshul Jain, Head of Research at Lakshmishree Investments

RailTel share price movement

RailTel share price opened at ₹312 on the BSE on Friday, up 5.3%. The RailTel share price thereafter gained to intraday highs of ₹329.75, which meant gains of more than 10%.

Railway stock RailTel share price that was trading close to ₹118 levels at the start of May 2023 has risen more than 2.5 times since and thereby given multibagger returns to the investors.

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