RailTel Shares Rally Post Q4: SEBI RA A&Y Market Research Eyes Breakout Above ₹339 For Further Upside

RailTel Corporation of India, a Navratna PSU under the Ministry of Railways, saw its shares rally nearly 10% on May 2 following robust earnings. 

The company reported a 46.3% jump in net profit to ₹113.4 crore, while revenue rose 57% to ₹1,308 crore for the fourth quarter (Q4). 

EBITDA also grew by 53.8% to ₹180 crore, though the EBITDA margin narrowed slightly to 13.73%.

Despite the dip in margins, the strong revenue and profit growth, along with the company’s strategic role in expanding digital infrastructure across Indian Railways, have boosted investor sentiment. 

RailTel's Navratna status, awarded in August 2024, has further strengthened its positioning for large-scale government digital projects. Brokerages believe this, coupled with a robust order book, supports a potential positive re-rating of the stock.

According to SEBI-registered advisor A&Y Market Research, the stock is facing resistance at ₹336 - ₹339. A breakout above this zone could signal a trend reversal, paving the way for further upside potential. 

They peg mid to long-term targets for RailTel at ₹400, ₹480, ₹550, ₹600 with stop loss at ₹290.

Data on Stocktwits shows that retail sentiment remains ‘neutral’ on the stock.

RailTel shares have fallen 19% year-to-date (YTD).

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