RailTel shares extend gains to 4th day; analysts see up to 44% upside
In an interaction with Zee Business Managing Editor Anil Singhvi, analyst Kunal Saraogi recommended buying RailTel shares on dips for a target of Rs 185.
RailTel Corp shares extended gains to a fourth straight session on Wednesday with strong volumes, shrugging off overall weakness on Dalal Street amid mixed global cues. The RailTel stock jumped by as much as Rs 5.8 or 4.5 per cent to Rs 133.9 apiece on BSE. Analysts see up to 44 percent upside potential in RailTel shares.
As many as 2.2 lakh RailTel shares changed hands within the first two hours of trade, as against a daily average of 2.6 lakh in the past two weeks, according to exchange data.
After market hours on Tuesday, RailTel — a subsidiary of the Indian Railways — said it had received an order worth Rs 186.2 crore including GST from Coal India subsidiary South Eastern Coalfields.
RailTel will provide multiprotocol label switching (MPLS) virtual private network (MPLS VPN) services at 529 locations under the SECL Command area for the period of five years, according to the regulatory filing. In an interaction with Zee Business Managing Editor Anil Singhvi, technical analyst Kunal Saraogi recommended buying RailTel shares on dips for a target of Rs 185 from a medium- to long-term view.
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"Railway stocks have picked momentum after a long time... RailTel has corrected all the way to Rs 130 after touching Rs 145 on the upside," Saraogi said.
Market expert Rakesh Bansal is bullish on the RailTel stock with a target price of Rs 180-185. ICICI Securities has a 'buy' call on RailTel with a target price of Rs 125. The brokerage has a strong outlook on the company for the second half of the current financial year.
Indian equity benchmarks succumbed to negative territory after a lacklustre start on Wednesday. The Sensex dropped as much as 423.25 points from the highest level of the day to hit 60,903.96 on the downside and the Nifty50 slumped to as low as 18,113.70, having come within inches of the 18,250 mark earlier in the day.
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