Is Railtel Corpn. overvalued or undervalued?

Nov 15 2025 08:12 AM IST
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As of November 14, 2025, Railtel Corporation is considered overvalued with a PE ratio of 35.62 and an EV to EBITDA of 19.68, significantly higher than peers like Indus Towers, and has underperformed the Sensex over the past year.
As of 14 November 2025, Railtel Corpn. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics, with a PE ratio of 35.62, an EV to EBITDA ratio of 19.68, and a PEG ratio of 2.55. These ratios suggest that the stock is priced significantly higher than its earnings growth potential.

In comparison to its peers, Railtel's valuation stands out as expensive when contrasted with Indus Towers, which has a PE ratio of 11.89 and an EV to EBITDA of 6.29, indicating a more favorable valuation. Additionally, while Railtel's ROCE is a strong 20.26%, it does not justify the high valuation compared to peers like Black Box, which has a PE of 34.68. Recent stock performance shows that Railtel has underperformed the Sensex over the past year, with a decline of 3.83% compared to the Sensex's gain of 9.00%, reinforcing the notion that the stock may be overvalued.
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