RailTel shares in focus after securing Rs 288 crore Kavach tender

RailTel Corporation of India shares will be in focus on Monday after the company secured a Rs 288 crore Kavach tender to install anti-collision technology at 71 stations across 502 route kilometers (RKM) of train tracks. A company statement said this is one of the largest signaling projects undertaken by RailTel.

The implementation of this system will not only enhance safety but also improve the overall operational efficiency of the East Central Railway, the statement added.

Kavach is an indigenous automatic train protection system designed to prevent train collisions by automatically applying brakes when a signal is passed at danger or when there is a risk of collision.


Also Read: Stocks in news: Zomato, Jio Financial, Swiggy, Coal India, Airtel, Ami Organics

Earlier in January, the company secured a Rs 78.43 crore order from Bharat Coking Coal Ltd (BCCL). In October 2024, RailTel won a Rs 144.88 crore contract from the Gujarat government’s Home Department. This project involves the supply, installation, commissioning, and maintenance of a CCTV video surveillance system across various police and cybercrime branches, set for completion by May 21, 2025.

Additionally, RailTel won a Rs 48.7-crore order in the same month from Health Insurance TPA of India Ltd to develop an integrated claims management solution portal and mobile application, with completion slated for June 14, 2030.

Also Read: Nifty50's valuation to get a lift with Zomato, Jio Fin joining index

RailTel shares target price

As per Trendlyne data, the average target price of the stock is Rs 288, which shows a downside of 6% from the current market prices. The consensus recommendation from 2 analysts for the stock is a 'Strong Sell'.

Also Read: Bitcoin’s drop: A chance for retail investors to buy the dip? Here’s what experts say

RailTel shares performance

The stock has declined 35% over the past six months but gained 173% in the last two years. The company’s market capitalization stands at Rs 9,798 crore.

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

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)