RAILTEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | RAILTEL | Market Cap | 10,646 Cr. | Current Price | 332 ₹ | High / Low | 479 ₹ |
| Stock P/E | 32.9 | Book Value | 65.8 ₹ | Dividend Yield | 0.86 % | ROCE | 21.8 % |
| ROE | 16.5 % | Face Value | 10.0 ₹ | DMA 50 | 348 ₹ | DMA 200 | 362 ₹ |
| Chg in FII Hold | 0.14 % | Chg in DII Hold | 0.06 % | PAT Qtr | 87.4 Cr. | PAT Prev Qtr | 63.6 Cr. |
| RSI | 44.0 | MACD | -3.34 | Volume | 45,85,366 | Avg Vol 1Wk | 22,69,639 |
| Low price | 265 ₹ | High price | 479 ₹ | PEG Ratio | 1.46 | Debt to equity | 0.03 |
| 52w Index | 31.2 % | Qtr Profit Var | 5.40 % | EPS | 9.99 ₹ | Industry PE | 21.4 |
📊 Chart & Trend Analysis: RAILTEL is trading at 332 ₹, below both its 50 DMA (348 ₹) and 200 DMA (362 ₹), indicating short-term and medium-term weakness. RSI at 44.0 suggests neutral-to-weak momentum, while MACD at -3.34 confirms mild bearish crossover. Bollinger Bands show price leaning towards the mid-lower band, signaling consolidation with downside risk but potential rebound if support holds near 325 ₹.
📈 Momentum Signals: Current volume (45.8 lakh) is significantly higher than the 1-week average (22.7 lakh), reflecting strong participation despite weak momentum. RSI near neutral levels suggests balanced momentum. Sustained price action above 348–362 ₹ could trigger a breakout towards 380–400 ₹.
🎯 Entry Zone: 320–335 ₹ (near support and neutral RSI)
🚪 Exit Zone: 360–380 ₹ (resistance near 200 DMA and upper trendline)
📌 Trend Status: Consolidating with bearish bias. A reversal is possible if price sustains above 362 ₹ with volume confirmation.
Positive
- Strong ROCE at 21.8% and ROE at 16.5% indicate efficient capital use.
- Low debt-to-equity ratio of 0.03 shows financial stability.
- Quarterly PAT improved to 87.4 Cr. from 63.6 Cr., showing sequential growth.
- EPS of 9.99 ₹ reflects profitability.
- FII (+0.14%) and DII (+0.06%) holdings increased, showing institutional support.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 32.9 compared to industry PE of 21.4, making valuation expensive.
- PEG ratio of 1.46 suggests overvaluation relative to growth.
Company Negative News
- MACD indicates bearish crossover, limiting immediate upside.
- Neutral RSI suggests lack of strong momentum.
Company Positive News
- Quarterly profit variation of +5.40% highlights operational improvement.
- Strong market cap of 10,646 Cr. reflects industry presence.
Industry
- Industry PE at 21.4 is lower than RAILTEL’s 32.9, suggesting sector peers are more reasonably valued.
- Telecom and digital infrastructure sector benefits from government-backed projects and rising data demand.
Conclusion
⚖️ RAILTEL is consolidating with bearish bias, trading below key moving averages but supported by strong fundamentals like ROCE, ROE, and low debt. Entry near 320–335 ₹ offers tactical opportunity, while exits around 360–380 ₹ align with resistance. Despite profit growth and institutional support, expensive valuation and weak technicals warrant cautious positioning until a breakout above 362 ₹ confirms reversal.