RailTel shares in focus after securing Rs 264 crore deal for Kavach safety system

Shares of state-owned RailTel Corporation of India will be in focus on Tuesday after the company announced it has received a work order worth Rs 264 crore (inclusive of taxes) from East Central Railway for the implementation of the Kavach system—India’s indigenous Train Collision Avoidance System (TCAS).

The project involves deploying Kavach over 607 route kilometres of low-density railway track under the jurisdiction of East Central Railway. The contract is scheduled for completion by July 14, 2027.

Last week, RailTel also secured a separate order worth Rs 17.47 crore from the General Administration Department (GAD) of Chhattisgarh. The scope of this contract includes the implementation of an integrated communication infrastructure comprising WLAN, LAN, EPABX systems, network connectivity, hardware procurement, commissioning, and long-term operations and maintenance. This project is expected to be completed by January 14, 2031.


The latest contract adds to a string of significant orders RailTel has received in July, bringing its total order value for the month to over Rs 130 crore.

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RailTel shares target price

According to Trendlyne data, the average target price for RailTel shares is Rs 270, implying a potential downside of 34% from current levels. The lone analyst tracking the stock has given a ‘Strong Sell’ recommendation.

RailTel shares performance

RailTel shares have gained 9% over the past six months and have surged 195% over the last two years. The company currently commands a market capitalization of Rs 13,148 crore.

RailTel, a Navratna public sector undertaking under the Ministry of Railways, is one of the largest neutral telecom infrastructure providers in India.

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