RAILTEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.2

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📊 Fundamental Analysis Report

• Stock Code: RAILTEL
• Market Cap: ₹11,814 Cr
• Current Price: ₹368
• 52W High/Low: ₹479 / ₹265
• EPS: ₹9.99
• Stock P/E: 36.6 vs Industry P/E: 14.9 ❗
• PEG Ratio: 1.63 🟡 (Slightly Overvalued)
• Book Value: ₹65.8 | P/B Ratio: ~5.59 ❗
• ROE: 16.5% | ROCE: 21.8% 🔶
• Debt to Equity: 0.03 🟢 (Very Low Debt)
• Dividend Yield: 0.76% 🚫
• Quarterly PAT: ₹87.4 Cr (↑37.4%)
• RSI: 48.1 | MACD: -1.73 📉

✅ Positive

• Strong ROE and ROCE reflect efficient capital deployment and profitability.
• Debt-free balance sheet enhances financial resilience and operational flexibility.
• Quarterly PAT improved from ₹63.6 Cr to ₹87.4 Cr, indicating earnings momentum.
• Volume above weekly average suggests rising investor interest.

⚠️ Limitation

• High P/E and P/B ratios suggest valuation is stretched relative to industry norms.
• PEG ratio above 1.5 indicates moderate overvaluation compared to growth.
• Dividend yield is low, offering limited passive income.
• FII holding declined by 0.13%, signaling cautious foreign sentiment.

📉 Company Negative News

• MACD remains negative, indicating weak short-term momentum.

📈 Company Positive News

• Quarterly profit growth of 5.4% YoY reflects operational stability.
• Stock has gained 48.1% over the past year, showing strong investor sentiment.

🏦 Industry

• RAILTEL operates in the telecom and infrastructure services sector, with a focus on railway connectivity.
• Industry P/E of 14.9 is significantly lower, suggesting RAILTEL trades at a premium.
• Sector benefits from digital infrastructure expansion and government-backed connectivity initiatives.

🧭 Conclusion

• Entry Zone: ₹350–₹360 (near support and RSI neutral)
• Long-Term View: Strong fundamentals and strategic positioning make RAILTEL a promising long-term hold. Accumulate on dips while monitoring valuation and technical indicators.