RAILTEL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis: RailTel Corporation of India Ltd. (RAILTEL)

Swing Trade Rating: 2.6

📉 Technical Setup

Current Price of ₹384 is slightly below DMA 50 (₹400) and just above DMA 200 (₹381) — suggesting mild technical weakness but potential for stabilization.

RSI: 34.3 — in oversold territory, but not signaling reversal yet.

MACD: −6.37 — bearish divergence; price momentum remains weak.

Volume is above weekly average — hints of accumulation despite weakness.

🧾 Fundamental Highlights

Valuation

P/E of 65.6 vs industry average of 28.7 — richly valued.

PEG Ratio: 22.5 — extremely high; suggests the price isn't justified by growth.

Profitability

ROCE: 16.2%, ROE: 12.0% — decent performance, but not exceptional.

EPS of ₹6.68 — modest earnings output.

PAT growth: ₹38.4 Cr → ₹68.2 Cr — solid quarterly rise.

Qtr Profit Variation of 23.4% — promising momentum despite high valuations.

Institutional Activity

FII ↑ 0.34%, DII ↑ 0.33% — cautious optimism from institutions.

Financial Position

Debt-to-equity: 0.03 — extremely low; positive sign for risk-averse traders.

Dividend Yield: 0.74% — minor passive income potential.

🎯 Optimal Entry Price

Buy Zone: ₹370–₹375

Entry near psychological and technical support levels.

Confirm setup with RSI > 38 and MACD flattening or turning up.

🚪 Exit Strategy (If Already Holding)

Profit Booking Range: ₹405–₹415

Near 50 DMA and short-term resistance zone.

Stop-Loss: ₹360

Offers downside protection slightly below current price and 200 DMA.

RAILTEL is riding on improving profitability but weighed down by stretched valuations and weak technicals. It might suit tactical swing traders eyeing a short rebound, but momentum confirmation is crucial. If you're scouting lower-valuation PSU tech plays with stronger setups, I can spotlight a few alternatives worth tracking. 📡📈

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