Why is Railtel Corporation of India Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 10.96% of over the last 5 years
2
Flat results in Dec 24
- PAT(Q) At Rs 66.76 cr has Fallen at -5.6 %
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated 3.37% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROE of 12.5, it has a Very Expensive valuation with a 5.3 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -23.92%, its profits have risen by 13.6% ; the PEG ratio of the company is 3.1
5
Despite the size of the company, domestic mutual funds hold only 0.36% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -0.92% in the last 1 year, its fall in the stock was much higher with a return of -23.92%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecommunication - Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Railtel Corpn. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Railtel Corpn.
-23.88%
-0.45
53.75%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
23.87%
EBIT Growth (5y)
10.96%
EBIT to Interest (avg)
36.84
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.26
Tax Ratio
25.55%
Dividend Payout Ratio
37.15%
Pledged Shares
0
Institutional Holding
3.70%
ROCE (avg)
17.75%
ROE (avg)
12.61%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
13
Price to Book Value
5.31
EV to EBIT
42.38
EV to EBITDA
24.50
EV to Capital Employed
6.13
EV to Sales
3.99
PEG Ratio
3.14
Dividend Yield
1.33%
ROCE (Latest)
14.46%
ROE (Latest)
12.45%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
NET SALES(HY)
At Rs 1,611.11 cr has Grown at 27.11 %
-1What is not working for the Company
PAT(Q)
At Rs 66.76 cr has Fallen at -5.6 %
Loading Valuation Snapshot...
Here's what is working for Railtel Corpn.
Net Sales - Half Yearly
At Rs 1,611.11 cr has Grown at 27.11 %
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Railtel Corpn.
Profit After Tax (PAT) - Quarterly
At Rs 66.76 cr has Fallen at -5.6 %
over average PAT of the previous four quarters of Rs 70.74 CrMOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)