Why is Railtel Corporation of India Ltd ?
1
Flat results in Dec 25
- PBT LESS OI(Q) At Rs 83.59 cr has Fallen at -10.8% (vs previous 4Q average)
- PAT(Q) At Rs 69.14 cr has Fallen at -14.3% (vs previous 4Q average)
- EPS(Q) Lowest at Rs 1.94
2
With ROE of 15.4, it has a Expensive valuation with a 5.1 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -6.44%, its profits have risen by 16.2% ; the PEG ratio of the company is 2
3
Despite the size of the company, domestic mutual funds hold only 1.11% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 9.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.44% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Railtel Corpn. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Railtel Corpn.
-6.47%
-0.16
41.15%
Sensex
8.49%
0.74
11.41%
Quality key factors
Factor
Value
Sales Growth (5y)
27.07%
EBIT Growth (5y)
18.37%
EBIT to Interest (avg)
74.88
Debt to EBITDA (avg)
0.11
Net Debt to Equity (avg)
-0.12
Sales to Capital Employed (avg)
1.45
Tax Ratio
26.18%
Dividend Payout Ratio
30.51%
Pledged Shares
0
Institutional Holding
4.53%
ROCE (avg)
19.42%
ROE (avg)
13.52%
Valuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
16
Price to Book Value
5.09
EV to EBIT
27.34
EV to EBITDA
18.00
EV to Capital Employed
5.64
EV to Sales
2.68
PEG Ratio
2.04
Dividend Yield
0.84%
ROCE (Latest)
20.26%
ROE (Latest)
15.38%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
Bullish
Technical Movement
4What is working for the Company
NET SALES(9M)
At Rs 2,608.62 cr has Grown at 20.26%
DEBTORS TURNOVER RATIO(HY)
Highest at 2.22 times
-8What is not working for the Company
PBT LESS OI(Q)
At Rs 83.59 cr has Fallen at -10.8% (vs previous 4Q average
PAT(Q)
At Rs 69.14 cr has Fallen at -14.3% (vs previous 4Q average
EPS(Q)
Lowest at Rs 1.94
Loading Valuation Snapshot...
Here's what is working for Railtel Corpn.
Debtors Turnover Ratio- Half Yearly
Highest at 2.22 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Net Sales - Nine Monthly
At Rs 2,608.62 cr has Grown at 20.26%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Railtel Corpn.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 83.59 cr has Fallen at -10.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 93.70 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 69.14 cr has Fallen at -14.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 80.64 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 1.94
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






