RailTel Corporation of India share price rose in early trading on September 5 following the announcement of a new contract worth Rs 10.92 crore. This contract, awarded by Northern Railways, involves a railway telecom project with a completion deadline set for September 5, 2025.
This order comes after RailTel’s recent elevation to Navratna status, a prestigious designation for top-performing public sector enterprises in India.
The multibagger stock has risen over 113 per cent in the last 12 months. Market analysts have attributed this positive momentum to RailTel’s newly acquired Navratna status.
Specifically, Navratna companies can invest up to Rs 1,000 crore without prior government approval and have more flexibility in project allocation, either up to 15 percent of a specific project or 30 percent of their net worth annually, within the Rs 1,000 crore limit.
In August, RailTel also secured a substantial work order valued at Rs 52.66 crore from the Uttar Pradesh Police Recruitment and Promotion Board.
This project focuses on enhancing security and efficiency during written exams and other recruitment processes through live CCTV surveillance, Aadhaar-based biometric controls, and advanced digital recognition technologies.
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 a media 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.
Besides pursuing international business ventures, the upgrade brings several other advantages for the company.
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