Railtel Corporation Of India Ltd.
NSE: RAILTELRailtel Corporation Of India Ltd.: A 30-second snapshot
RailTel Corporation of India (RAILTEL) is a Navratna PSU telecom infrastructure company trading at ₹322, 5.5% below its 200-DMA of ₹340.77 and 32.2% off its 52-week high. Five-year revenue and earnings CAGR of 28.4% and 25.3% respectively reflect strong top-line momentum, though a debt-to-equity of 2.82 with a rising trend and a quality score of 47 out of 100 signal execution risks beneath the growth headline.
P/E
32.6
Forward P/E
21.5
ROE
+16.3%
Debt / Equity
2.82
Profit Margin
+8.0%
Div. Yield
+1.2%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
48/100
Recent context
- ·No news items were retrieved in this run; developments related to government contracts, NIC empanelment renewals, or capex announcements cannot be assessed from current data.
- ·The stock has returned 8.1% over the past 12 months against a 3-month change of -0.3%, suggesting the 1-year gain was concentrated in an earlier period that has since stalled.
- ·Nearest resistance cluster sits at ₹353.9–₹357.4, approximately 10% above current price; nearest support levels are ₹321.4 and ₹314.5, both within 2.5% of the current price.
Strengths
- +Five-year revenue CAGR of 28.4% and earnings CAGR of 25.3% reflect consistent top-line expansion, supported by RAILTEL's government-backed mandate across the national optical fibre network.
- +Forward PE of 21.5 is a meaningful compression from the trailing PE of 32.6, indicating the market is pricing in earnings growth over the next 12 months.
- +Current price of ₹322 is 7.4% above the 50-DMA (₹299.76), with RSI at 50.6 in a neutral zone — price has recovered from its lower base without entering overbought territory.
- +Dividend yield of 1.16% with FCF positive in 3 of available years provides a baseline return to shareholders alongside the growth profile.
Weaknesses
- −Debt-to-equity of 2.82 is on a rising trend, and FCF was positive in only 3 of available years, raising questions about the sustainability of capital allocation as infrastructure investments scale.
- −ROE of 16.25% has not exceeded 15% in any recorded year per the persistence data (roeYearsAbove15 = 0), suggesting the current ratio may not yet represent an established baseline.
- −The stock ranks 5th of 6 telecom peers on ROE; BHARTIARTL, INDUSTOWER, BHARTIHEXA, and TATACOMM all record higher returns on equity, placing RAILTEL near the bottom of the sector on capital efficiency.
- −At 32.2% below its 52-week high and below the 200-DMA for an extended period, the price trend has diverged negatively from the growth reported in fundamentals.
Open questions
- ?Does the rising debt-to-equity trend reflect productive capex tied to contracted government orders, or is it financing operational shortfalls?
- ?RailTel's mandate is linked to national digital infrastructure — to what extent does its revenue depend on policy continuity and government spending cycles?
- ?Given the 5-year earnings CAGR of 25.3%, what would need to hold true for the forward PE compression from 32.6 to 21.5 to materialise in actual reported earnings?
- ?How does RAILTEL's qualityScore of 47 compare across its historical range, and does the recent debt trend represent a structural shift or a project-cycle peak?
Peer comparison: Telecom
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| RAILTEL | Railtel Corporation Of India Ltd.You're viewing | 32.6 | +16.3% | 47 |
| Industry avg | across 5 peers | 33.5 | +25.7% | 38 |
| INDUSTOWER | Indus Towers Ltd. | 14.9 | +19.8% | 67 |
| BHARTIHEXA | Bharti Hexacom Ltd. | 41.8 | +28.8% | 50 |
| IDEA | Vodafone Idea Ltd. | — | — | 40 |
| BHARTIARTL | Bharti Airtel Ltd. | 34.8 | +23.1% | 30 |
| TATACOMM | Tata Communications Ltd. | 42.4 | +31.1% | 5 |
Technical state
Current price
₹322.00
SMA 50
₹299.76
SMA 200
₹340.77
RSI (14)
50.6 (neutral)
From 52w high
-32.2%
1Y return
+8.1%
3M return
-0.3%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumDebt-to-equity of 2.82 with a rising debt trend; FCF positive in only 3 of available years, indicating inconsistent free cash generation relative to borrowings.
- mediumROE of 16.25% has not exceeded 15% in any recorded year per persistence data (roeYearsAbove15 = 0), suggesting the current ROE figure may reflect a recent or single-year uptick rather than sustained profitability.
- mediumPrice of ₹322 is 5.5% below the 200-DMA (₹340.77) and has logged a 52-week drawdown of 32.2%, indicating a prolonged period of underperformance relative to its own trend.
- lowROE of 16.25% ranks 5th of 6 telecom peers; BHARTIARTL (23.1%), INDUSTOWER (19.8%), BHARTIHEXA (28.8%), and TATACOMM (31.1%) all register higher returns on equity.
- lowZero news items retrieved for this run; news-based sentiment analysis is unavailable and recent developments cannot be assessed.
- lowAnalyst coverage is sparse: mean rating of 4.5 across only 2 analysts (1–5 scale, lower = more constructive), making consensus statistically unreliable.
Cross-section contradictions
- Revenue growth of 28.4% CAGR over 5 years and earnings growth of 25.3% CAGR coexist with a quality score of 47 and consistency score of 44, suggesting growth has not translated into durable profitability metrics.
- Forward PE of 21.5 represents a meaningful discount to trailing PE of 32.6, implying earnings acceleration is expected, yet debt is rising and ROE persistence is weak — the basis for the forward earnings uplift warrants scrutiny.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days