RAILTEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | RAILTEL | Market Cap | 10,756 Cr. | Current Price | 335 ₹ | High / Low | 479 ₹ |
| Stock P/E | 33.1 | Book Value | 65.8 ₹ | Dividend Yield | 0.85 % | ROCE | 21.8 % |
| ROE | 16.5 % | Face Value | 10.0 ₹ | DMA 50 | 347 ₹ | DMA 200 | 361 ₹ |
| Chg in FII Hold | 0.14 % | Chg in DII Hold | 0.06 % | PAT Qtr | 68.7 Cr. | PAT Prev Qtr | 87.4 Cr. |
| RSI | 45.5 | MACD | -3.67 | Volume | 17,87,357 | Avg Vol 1Wk | 22,14,776 |
| Low price | 265 ₹ | High price | 479 ₹ | PEG Ratio | 1.47 | Debt to equity | 0.03 |
| 52w Index | 32.6 % | Qtr Profit Var | 2.92 % | EPS | 9.91 ₹ | Industry PE | 21.9 |
📊 Analysis: RAILTEL trades at a premium valuation (P/E 33.1 vs industry 21.9) with strong efficiency metrics (ROCE 21.8%, ROE 16.5%) and a debt-light balance sheet (Debt-to-equity 0.03). EPS at ₹9.91 is modest relative to price, while dividend yield at 0.85% adds minor investor appeal. The current price (₹335) is below both 50 DMA (₹347) and 200 DMA (₹361), showing technical weakness. RSI at 45.5 suggests neutral-to-weak momentum, and MACD (-3.67) confirms bearish bias. Quarterly PAT declined (₹87.4 Cr → ₹68.7 Cr), though overall profit variation remains positive at 2.92%. Despite strong fundamentals, stretched valuations and weak technicals make RAILTEL a cautious swing trade candidate.
💡 Optimal Entry Price: Around ₹325–₹330 (near support zone).
🚪 Exit Strategy: If already holding, consider booking profits near ₹355–₹360 (DMA resistance). Exit below ₹320 if weakness persists to protect capital.
✅ Positive
- Strong ROCE (21.8%) and ROE (16.5%).
- Debt-to-equity ratio at 0.03 ensures financial stability.
- EPS of ₹9.91 reflects consistent earnings.
- Institutional holdings increased (FII +0.14%, DII +0.06%).
⚠️ Limitation
- Valuation premium (P/E 33.1 vs industry 21.9).
- Price trading below both 50 DMA and 200 DMA.
- MACD indicates bearish trend.
- Dividend yield is modest at 0.85%.
📉 Company Negative News
- Quarterly PAT declined (₹87.4 Cr → ₹68.7 Cr).
- Weak 52-week index at 32.6% shows poor price performance.
- Trading volume lower than weekly average.
📈 Company Positive News
- Profit variation remains positive at 2.92% despite sequential decline.
- Institutional inflows (FII and DII) show investor confidence.
- Debt-free structure supports long-term stability.
🏭 Industry
- Industry P/E at 21.9 highlights RAILTEL’s premium valuation.
- Telecom and broadband infrastructure sector benefits from digital expansion and government projects.
🔎 Conclusion
RAILTEL is fundamentally strong with high efficiency and low debt, but stretched valuations and weak technical signals limit upside. It is a cautious swing trade candidate with entry near ₹325–₹330 and exit near ₹355–₹360. Risk management is essential due to bearish momentum and modest earnings growth.