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Check Before You Invest : Railtel Corporation Of India Ltd

BSE: 543265 NSE: RAILTEL ISIN: INE0DD101019
  |   Sector:  Telecom   |   Industry:  Telecommunication - Service Provider

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 10 year financial track record.
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.
Q.4 Is Railtel Corporation Of India Ltd a good buy now?
Railtel Corporation Of India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

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 26.3% , 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 with its 5 year median of 9.62%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 17.4 21
Operating Profit Margin 15.38 19.37
Net Profit Margin 8.62 9.62
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 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 historical median of 14.17%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Railtel Corporation Of India Ltd?
Railtel Corporation Of India Ltd Cash conversion cycle is 19 days, below its historical median of 29 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.76 0.65
ROE 15.67 14.17
ROCE 21.67 19.61
Cash Conversion Cycle 19 days 29 days
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 above with the industry average of -0.73 , indicating higher 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, indicating the business is able to service its debt comfortably.

Ownership & governance

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)

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 1.67% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,477.5 332
Gross Profit 605.2 0.7
Operating Profit 535 7.2
Net Profit 300 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.76 0.86
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 19.48% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 19.5% 39.6% -2.7%
Q.3 Valuation ratios of Railtel Corporation Of India Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 28.71 20.52 41.09
Price to Book 4.2 2.35 0.69
Price to Sales 2.33 1.98 2.07
EV to EBITDA 13.78 8.67 12.28

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