Check Before You Invest : Railtel Corporation Of India Ltd

Q: Which industry/sub-sector does Railtel Corporation Of India Ltd belong to?

Railtel Corporation Of India Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.

Q: Is Railtel Corporation Of India Ltd a good quality company?

Railtel Corporation Of India Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Railtel Corporation Of India Ltd undervalued or overvalued?

Railtel Corporation Of India Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 29.73, Historic Median: 32.83. Price to Book, Current: 4.55, Historic Median: 4.24. Price to Sales, Current: 2.41, Historic Median: 2.98. EV to EBITDA, Current: 14.04, Historic Median: 15.22

Q: Is Railtel Corporation Of India Ltd a good buy now?

Railtel Corporation Of India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd revenue growth is 35.4% for FY-2025, which is above its 5-year CAGR of 26.33%, indicating faster growth.

Q: Gross Profit margin of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.4% for FY-2025, which is below its 5-year median of 21%, indicating decreasing margins.

Q: Operating Profit Margin of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.38% for FY-2025, which is below its 5-year median of 19.37% indicating decreasing margins.

Q: Net Profit Margin of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Net Profit Margin is 8.62% for FY-2025, is below its 5-year median of 9.62%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.4, Historic Median: 21. Operating Profit Margin (%), Current: 15.38, Historic Median: 19.37. Net Profit Margin (%), Current: 8.62, Historic Median: 9.62

Q: Return on Asset of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Return on Asset is 6.59%, which is in line with its 5-year historical median of 6.59%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Return on capital employed is 21.67% for FY-2025, which is above its 5-year historical median of 19.61%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Railtel Corporation Of India Ltd

Snapshot

Q.1 Which industry/sub-sector does Railtel Corporation Of India Ltd belong to?

Railtel Corporation Of India Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.

Q.2 Is Railtel Corporation Of India Ltd a good quality company?

Railtel Corporation Of India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Railtel Corporation Of India Ltd undervalued or overvalued?

Railtel Corporation Of India Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	29.73	32.83
Price to Book	4.55	4.24
Price to Sales	2.41	2.98
EV to EBITDA	14.04	15.22

Q.4 Is Railtel Corporation Of India Ltd a good buy now?

Railtel Corporation Of India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd revenue growth is 35.4% for FY-2025, which is above its 5-year CAGR of 26.33%, indicating faster growth.

Q.2 Gross Profit margin of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.4% for FY-2025, which is below its 5-year median of 21%, indicating decreasing margins.

Q.3 Operating Profit Margin of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.38% for FY-2025, which is below its 5-year median of 19.37% indicating decreasing margins.

Q.4 Net Profit Margin of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Net Profit Margin is 8.62% for FY-2025, is below its 5-year median of 9.62%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.4	21
Operating Profit Margin (%)	15.38	19.37
Net Profit Margin (%)	8.62	9.62

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Return on Asset is 6.59%, which is in line with its 5-year historical median of 6.59%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Return on capital employed is 21.67% for FY-2025, which is above its 5-year historical median of 19.61%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Return on equity is 15.67% for FY-2025, which is above its 5-year historical median of 14.17%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Cash conversion cycle is 19 days, below its 5-year historical median of 29 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.76	0.65
ROE (%)	15.67	14.17
ROCE (%)	21.67	19.61
Cash Conversion Cycle	19 days	29 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of Railtel Corporation Of India Ltd?

Railtel Corporation Of India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Railtel Corporation Of India Ltd?

Q.1 Promoter shareholding and pledge status of Railtel Corporation Of India Ltd?

Promoters hold 72.84% of the Railtel Corporation Of India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Railtel Corporation Of India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Railtel Corporation Of India Ltd vs industry peers?

Railtel Corporation Of India Ltd revenue CAGR is 26.33%, compared to the industry median CAGR of 0.59%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	35.4	0.6
Gross Profit Growth (%)	17.7	10.8
Operating Profit Growth (%)	15.3	8.7
Net Profit Growth (%)	22	36

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.76	0.88
ROE (%)	15.67	-
ROCE (%)	21.67	2.27
Cash Conversion Cycle (days)	19.49	-5

Valuation & price assessment

Q.1 Stock return of Railtel Corporation Of India Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 19.47% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	19.5%	38.8%	-15.8%

Q.2 Valuation ratios of Railtel Corporation Of India Ltd vs historical?

The current P/E ratio of 29.73 is lower than its historical median of 32.83, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	29.73	32.83	19.24
Price to Book	4.55	4.24	0.68
Price to Sales	2.41	2.98	2.17
EV to EBITDA	14.04	15.22	12.27

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Check Before You Invest : Railtel Corporation Of India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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