Shares of state-run Railtel Corporation of India Ltd. were trading with gains of up to 7% in Friday’s morning trade.

The sharp uptick in the stock price came after the company announced that it had received a work order worth ₹52.66 crore from the Uttar Pradesh Police Recruitment and Promotion Board.

The project involves providing live CCTV surveillance, Aadhaar-based biometric impersonation control, and digital fingerprint and facial recognition services during written exams and DV&PST, RailTel said in a filing earlier.

In a recent interaction with CNBC-TV18, Railtel Corporation’s CMD Sanjai Kumar said the company is eyeing strong order inflows during the current financial year.

Kumar projects revenue growth of over 30% for the year to somewhere around ₹3,400-3,500 crore of revenue by the end of this quarter year.

Despite today’s gain, Railtel shares are down 22% from its recent peak of ₹617.80, which it hit on July 12, 2024.

Hem Securities Senior Research Analyst Astha Jain said that she expects RailTel to continue to fluctuate within the range of ₹450-550 for some time.

“Although it’s a wide range, once RailTel shares get stuck, they’ll be seen fluctuating within it. However, investors should stay because it’s good for the long term,” Jain had said while answering a viewer query on CNBC Awaaz earlier this month.

The analyst has set an initial target of ₹550 on the counter, and then ₹600 over the next two-month period. She advised investors to ‘Hold’ on to the RailTel stock, maintaining a stop loss at ₹440.

In the June quarter, the company reported a 25% rise in net profit at ₹48.67 crore. RailTel’s revenue from operations rose 19% to ₹558 crore for the quarter.

At the operating level, EBITDA surged 14.8% to ₹103 crore in the June quarter, compared to ₹90 crore in the year-ago period.

In terms of technicals, the relative strength index (RSI) of RailTel stood at 46.8, indicating the stock is neither trading in the overbought nor the oversold territory. The stock has a one-year beta of 1.2, suggesting very high volatility during the period.

RailTel shares are trading higher than the 50-day, 100-day, 150-day, and 200-day moving averages.

Shares of RailTel are currently trading 5.76% higher at ₹498.85. At this price, the multibagger stock has risen over 40% so far this year and is up 196% over the last 12 months.