Steelman Telecom stock hits 20% upper circuit after company wins ₹147 crore Reliance Jio order

Shares of Steelman Telecom were locked at the 20 per cent upper circuit limit in Wednesday's trade, December 4, hitting a one-month high of ₹154.80 apiece. This strong buying interest in shares came after the company secured a significant order from Reliance Projects & Property Management Services Limited (Jio).

In an exchange filing on Tuesday, the company informed investors that it had received an order worth ₹147 crore to provide frontend, backend, and supervisory teams for the maintenance of indoor small cells, indoor and outdoor Wi-Fi, and enterprise UBR. The project, to be executed over three years, is larger than the company's market capitalisation of ₹123.84 crore as of the previous day.

Steelman Telecom is recognised as a service provider for the telecom industry, focusing on maintaining and expanding the sector's communications infrastructure. The Indian telecommunication sector, currently the world’s second-largest, is undergoing significant transformation driven by advancements in technology and evolving market demands.

In the Union Budget 2023–24, the Department of Telecommunications was allocated ₹92,000 crore (approximately US$11.35 billion), with 38 per cent earmarked for revenue expenditure and 62 per cent for capital expenditure.

As of September 2024, Reliance Jio's wireless subscriber base stood at 46.37 crore, followed by Bharti Airtel with 38.34 crore users. Vodafone Idea's subscriber count was 21.24 crore, while BSNL's wireless user base reached 9.18 crore during the same period.

Stock up 37% from its all-time low

With the current market price of ₹154.80 apiece, the stock is trading 37 per cent higher than its all-time low of ₹114.50 in June 2024. The company aims to leverage its project management expertise to address the growing demand for telecom projects in India, focusing on efficient resource deployment to enhance operating margins.

With an emphasis on customer service, the organisation plans to improve efficiency and effectiveness while targeting new geographical markets, particularly in the Asia-Pacific region, where higher margins and strategic opportunities can expand its revenue base, its FY25 annual report showed. 

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