RAILTEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | RAILTEL | Market Cap | 9,054 Cr. | Current Price | 282 ₹ | High / Low | 479 ₹ |
| Stock P/E | 27.8 | Book Value | 65.8 ₹ | Dividend Yield | 1.01 % | ROCE | 21.8 % |
| ROE | 16.5 % | Face Value | 10.0 ₹ | DMA 50 | 316 ₹ | DMA 200 | 348 ₹ |
| Chg in FII Hold | 0.14 % | Chg in DII Hold | 0.06 % | PAT Qtr | 68.7 Cr. | PAT Prev Qtr | 87.4 Cr. |
| RSI | 39.2 | MACD | -14.8 | Volume | 15,15,766 | Avg Vol 1Wk | 11,24,123 |
| Low price | 265 ₹ | High price | 479 ₹ | PEG Ratio | 1.23 | Debt to equity | 0.03 |
| 52w Index | 7.80 % | Qtr Profit Var | 2.92 % | EPS | 9.91 ₹ | Industry PE | 18.8 |
📊 Chart Analysis: RAILTEL is trading below both its 50 DMA (316 ₹) and 200 DMA (348 ₹), indicating a bearish setup. RSI at 39.2 suggests the stock is nearing oversold territory, while MACD at -14.8 confirms negative momentum. Bollinger Bands show price leaning towards the lower band, reflecting weakness. Current volume (15,15,766) is higher than average (11,24,123), suggesting active selling pressure.
📈 Momentum Signals: Short-term momentum remains weak. RSI near 35–40 could trigger a rebound, but MACD still signals bearish divergence.
💰 Entry Zone: 265 ₹ – 275 ₹ (near support levels).
📉 Exit Zone: 310 ₹ – 320 ₹ (resistance near 50 DMA).
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if price sustains above 316 ₹ with stronger volume.
Positive
- Strong ROCE (21.8%) and ROE (16.5%) indicate efficient capital usage.
- Debt-to-equity ratio of 0.03 shows a nearly debt-free balance sheet.
- Dividend yield of 1.01% provides modest income support.
Limitation
- Stock P/E (27.8) is higher than industry PE (18.8), suggesting overvaluation.
- Trading below both 50 DMA and 200 DMA, signaling weakness.
- Quarterly PAT declined (68.7 Cr vs 87.4 Cr), showing earnings pressure.
Company Negative News
- Stock corrected significantly from 52-week high (479 ₹ to 282 ₹).
- Quarterly profit variation (+2.92%) is modest compared to prior performance.
Company Positive News
- EPS at 9.91 ₹ reflects consistent profitability.
- FII holdings increased (+0.14%) and DII holdings also rose (+0.06%), showing institutional support.
Industry
- Industry PE at 18.8 indicates relatively cheaper valuations compared to RAILTEL’s higher P/E.
- Sector outlook remains stable with telecom and digital infrastructure demand supporting growth.
Conclusion
⚠️ RAILTEL is currently in a bearish consolidation phase. Entry is favorable near 265–275 ₹ support with a strict stop-loss. Exit should be considered near 310–320 ₹ resistance. Long-term investors may wait for confirmation of reversal above 316 ₹ with stronger volume before adding positions.