RAILTEL - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.0

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

RAILTEL presents a technically strong and fundamentally stable swing trade setup. While valuation is on the higher side and recent earnings have softened, the stock’s momentum, low debt, and institutional interest make it a viable candidate for short-term trading.

✅ Strengths

Technical Momentum

RSI: 66.0 → Bullish, approaching overbought.

MACD: 7.91 → Strong positive crossover.

Price above DMA50 (₹372) and DMA200 (₹375) → Confirmed uptrend.

Fundamental Stability

ROCE: 21.8% and ROE: 16.5% → Strong capital efficiency.

Debt-to-Equity: 0.02 → Virtually debt-free.

EPS: ₹9.88 → Solid earnings base.

Institutional Confidence

FII Holding ↑ 0.34%, DII Holding ↑ 0.33% → Positive sentiment.

52-Week Strength

Up 60.2% from low of ₹265 → Strong price performance.

⚠️ Weaknesses

Valuation

P/E: 40.0 vs Industry PE: 18.1 → Overvalued.

PEG Ratio: 1.78 → Slightly expensive relative to growth.

Earnings Softness

PAT dropped from ₹106 Cr. to ₹63.6 Cr. → Needs monitoring.

Qtr Profit Var: +3.57% → Minimal growth.

Volume Drop

Current volume (18.68L) < 1-week average (78.15L) → Declining interest.

Low Dividend Yield: 0.72% → Minimal passive income.

🎯 Optimal Entry Price

Buy Zone: ₹375–₹385

Near DMA200 and support levels, offering a safer entry with limited downside.

🚪 Exit Strategy (If Holding)

Target Exit: ₹420–₹440

Based on swing potential and resistance zone.

Stop Loss: ₹360

Below DMA50 to manage downside risk.

This setup suits momentum-driven swing traders who can monitor RSI and MACD for continuation signals and exit on strength. Let me know if you'd like help tracking this setup or setting alerts.

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