Railtel Corporation Of India Ltd - Stock Valuation and Financial Performance

BSE: 543265 | NSE: RAILTEL | Telecommunication - Service Provider | Small Cap

Railtel Corporation Of India Ltd. Share Price

364.60 -9.65 -2.58%
as on 21-Nov'24 16:59

DeciZen - make an informed investing decision on Railtel Corporation Of India Ltd.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Railtel Corporation Of India stock performance -

mw4me loader
P/E Ratio (SA):
46.02
Market Cap:
12,011.1 Cr.
52-wk low:
260.5
52-wk high:
618

Is Railtel Corporation Of India Ltd an attractive stock to invest in?

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

Past 10 year's financial track record analysis by Moneyworks4me indicates that Railtel Corporation Of India Ltd is a good quality company.

2. Is Railtel Corporation Of India Ltd undervalued or overvalued?

The key valuation ratios of Railtel Corporation Of India Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

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

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Railtel Corporation Of India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Railtel Corporation Of India Ltd.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Railtel Corporation Of India Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 17.4%18.6%17.5%16.3%14.5%14.2%14.4%19.6%16.7%19.7%-
Value Creation
Index
0.30.40.30.20.10.10.00.40.20.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4825728489849861,0811,3371,5221,9572,5682,903
Sales YoY Gr.-18.8%48.2%16%0.2%9.6%23.8%13.8%28.6%31.2%-
Adj EPS 3.83.23.94.94.25.44.46.55.98.38.1
YoY Gr.--16.2%24.7%24.1%-13.7%27.7%-18.7%48.2%-8.8%39.5%-
BVPS (₹) 31.333.836.138.94042.443.747.251.456.958.8
Adj Net
Profit
121102126157135173140208190265261
Cash Flow from Ops. 154154250-9.932.3154374258284556-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 20.4%21.1%24.3%31.2%
Adj EPS 9.1%14.4%23.6%39.5%
BVPS6.9%7.3%9.2%10.8%
Share Price - - 44.3% 34.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
12.69.711.31310.713.110.214.31215.314.1
Op. Profit
Mgn %
38.13630.127.930.530.924.524.219.418.116.1
Net Profit
Mgn %
25.117.714.91613.71610.513.79.710.39
Debt to
Equity
00000000000
Working Cap
Days
499406281258271295290308327314144
Cash Conv.
Cycle
415364043241829475533

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.00%

Sales growth is growing at healthy rate in last 3 years 24.29%

Net Profit is growing at healthy rate in last 3 years 23.55%

Sales growth is good in last 4 quarters at 31.66%

No data to display

Latest Financials - Railtel Corporation Of India Ltd.

Standalone Consolidated
TTM EPS (₹) 8.1 6.3
TTM Sales (₹ Cr.) 2,903 2,054
BVPS (₹.) 58.8 52.6
Reserves (₹ Cr.) 1,567 1,366
P/BV 6.36 7.12
PE 46.02 59.57
From the Market
52 Week Low / High (₹) 260.50 / 618.00
All Time Low / High (₹) 84.00 / 618.00
Market Cap (₹ Cr.) 12,011
Equity (₹ Cr.) 320.9
Face Value (₹) 10
Industry PE 67.1

Management X-Ray of Railtel Corporation Of India Ltd.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Railtel Corporation Of India Ltd.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales4825728489849861,0811,3371,5221,9572,568
Operating Expenses 2983665937106857471,0101,1541,5782,103
Manufacturing Costs1852004365485435957749371,3431,859
Material Costs0000000000
Employee Cost 7088105118111117122183194205
Other Costs 447952453235114344140
Operating Profit 183206255273301333328368379464
Operating Profit Margin (%) 38.1%36.0%30.1%27.8%30.5%30.9%24.5%24.2%19.4%18.1%
Other Income 73695741313431284262
Interest 016266471114
Depreciation 9081116119112131159160154158
Exceptional Items 0000-37-49050-2-27
Profit Before Tax 166194189194179181195280254328
Tax 45926338694354716682
Profit After Tax 121102127156110138140208188246
PAT Margin (%) 25.1%17.8%14.9%15.9%11.1%12.8%10.5%13.7%9.6%9.6%
Adjusted EPS (₹)3.83.24.04.93.44.34.46.55.97.7
Dividend Payout Ratio (%)14%22%18%33%57%49%50%37%43%37%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1,0041,0841,1571,2491,2841,3611,4031,5161,6491,827
Share Capital 321321321321321321321321321321
Reserves 6837638369289631,0401,0821,1951,3281,506
Minority Interest0000000000
Debt0000000000
Long Term Debt0000000000
Short Term Debt0000000000
Trade Payables109138217274264354521483569771
Others Liabilities 9379889317356085416687361,1001,407
Total Liabilities 2,0502,2112,3062,2592,1562,2562,5922,7343,3184,004

Fixed Assets

Gross Block1,2361,4311,5311,6431,8561,9421,9812,1432,3312,569
Accumulated Depreciation6407208379551,0661,1531,2211,3681,5101,656
Net Fixed Assets596711694688790789760775821913
CWIP 168262360364300253215164157130
Investments 10101010171010404090
Inventories1100101113
Trade Receivables1682583684654574757616661,0481,268
Cash Equivalents 672560604445335170520276273485
Others Assets4354102702872565593248129771,115
Total Assets 2,0502,2112,3062,2592,1562,2562,5922,7343,3184,004

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 154154250-1032154374258284556
PBT 166194189194110138140208188246
Adjustment 2321818190168220138126118
Changes in Working Capital 8-3523-235-107-1155810-2192
Tax Paid -43-26-43-50-61-37-44-48-31-27
Cash Flow From Investing Activity -214-240-1525144-48-135-213-203-419
Capex -158-297-198-117-86-62-80-117-176-210
Net Investments 0001391016-66-133-55-243
Others -5657453029712362933
Cash Flow From Financing Activity -12-26-54-62-77-62-110-104-79-77
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 0000000000
Dividend Paid -12-22-45-52-62-46-100-95-69-66
Others 0-4-9-10-15-16-9-9-10-12
Net Cash Flow -72-11344-20-143130-59360
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)12.629.7511.3112.988.6710.4610.1614.2811.914.17
ROCE (%)17.3618.6417.4616.2514.5414.1614.419.6116.7419.66
Asset Turnover Ratio0.230.270.380.430.450.490.550.570.650.7
PAT to CFO Conversion(x)1.271.511.97-0.060.291.122.671.241.512.26
Working Capital Days
Receivable Days122136135155171157169171160165
Inventory Days2100000000
Payable Days0000000000

Railtel Corporation Of India Ltd Stock News

Railtel Corporation Of India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Railtel Corporation Of India Ltd. on 21-Nov-2024 16:59 is ₹364.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Nov-2024 16:59 the market cap of Railtel Corporation Of India Ltd. stood at ₹12,011.1.
The latest P/E ratio of Railtel Corporation Of India Ltd. as of 21-Nov-2024 16:59 is 46.02.
The latest P/B ratio of Railtel Corporation Of India Ltd. as of 21-Nov-2024 16:59 is 6.36.
The 52-week high of Railtel Corporation Of India Ltd. is ₹618.0 and the 52-week low is ₹260.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Railtel Corporation Of India Ltd. is ₹2,903 ( Cr.) .

About Railtel Corporation Of India Ltd

The company is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. It is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways. It was incorporated on September 26, 2000 with the aim of modernizing the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks.

The transport network is built on high-capacity dense wavelength division multiplexing (DWDM) technology and an Internet protocol/ multi-protocol label switching (MPLS) network over it to support mission critical communication requirements of Indian Railways and other customers. The company operate data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways. In addition to strategic and critical network infrastructure services, it also undertakes various ICT projects for the Indian Railways, central government and state governments, including various train control system projects for Indian Railways.

Business area of the company

The company offers a diverse range of services across industries. Its portfolio of services can be broadly classified as below:

Telecom Network Services:

  • National Long Distance (NLD) Services: The company provide digital capacity to carry long distance telecommunication services including various tele-services such as voice, data, fax, text, video and multimedia. As part of NLD services, it offers its enterprise customers with: (i) leased line services; and (ii) MPLS based virtual private network (VPN) facilities.
  • Internet Service Provider (ISP) Services: As part of the company’s ISP services, the company offers enterprise customers Internet leased line services with multiple bandwidth options ranging from 2 MBPS and above across India. It also offers retail broadband services through its ‘RailWire’ platform.
    Telecom Infrastructure Services:
  • Passive Infrastructure (IP-1) Services: The company provides storage, power, cooling, and physical security for servers and networking equipment of its customers and connect them with a variety of telecommunications and network service providers. In addition, it provide space on microwave towers for collocating base transceiver stations (BTS) for telecom operators, small cell sites for extending their mobile coverage and space for collocating mobile switching centers. It also provide single core dark fiber for transmission of digital video signals to multiple system operators (MSOs) for cable distribution.

Managed Data Center and Hosting Services:

  • Data Centre and Managed Hosting Services: The company offer a variety of data centre services including Infrastructure as a Service or IaaS, dedicated hosting, managed services, cloud computing, managed e-Office services, disaster recovery services, Aadhar authentication services and other IT related services such as load balancing services, application hosting, bandwidth services and advanced firewall services.
  • Telepresence Services (TPaaS): The company offer end-to-end, high-definition, secure, hosted multitenant video conferencing facility bundled with required bandwidth as a service.
  • Security Operations Centre as a Services (SOCaaS): The company’s security operations centre (SOC) provides centralized and consolidated cyber security incident prevention and security event monitoring services, it has detection response capabilities and supports requirements of other business units. It is able to provide both offsite and onsite security solutions.

Projects (System Integration Services):

  • ICT Hardware, Software and Service System Integration Projects: The company collaborates with partners and OEMs to undertake ICT hardware implementation, software delivery and digital transformation projects including creation of state wide area network (WAN) and its maintenance, data center and facility management services, Wi-Fi projects, city surveillance projects, laying of state wide fiber optic network and its maintenance, implementation and maintenance of end-to-end IT applications of enterprises.
  • Digital Services: The company also collaborate with partners who offer solutions/ applications that are hosted on its data centers, it offers digital services including unified communications, Wi-Fi as a service, e-tendering/ e-auction/ smart payments and disaster management services.
  • Other Services: Other services offered by the company include consultancy services for ICT services and solutions and signaling services including signal design and design automation software tools for the Indian Railways.

Achievements, awards and accreditations

  • 2010 Received the ‘MOU Excellence Award (2018-09)’ in the electronics and communications sector.
  • 2014: Awarded the ‘Innovative Managed Services Award’ at the Aegis Graham Bell Awards 2014 for RailWire services.
  • 2015: Received an award under the ‘Digital India’ category at the Aegis Graham Bell Awards 2015.
  • 2015: Awarded the ‘Best Carrier of the Carrier’ Award at the VAR INDIA Star Nite Awards 2015.
  • 2015: Received an award at the 12th National Awards for Excellence in Cost Management in the public-service sector (medium) category from the Institute of Cost Accounts of India.
  • 2016: Received ‘Leadership Recognition’ in the internet and broadband category at the ‘Voice & Data Leadership Awards 2016’.
  • 2016: Received ‘Leadership Recognition’ in the enterprise business services category at the ‘Voice & Data Leadership Awards 2016’’.
  • 2016: Received 2nd Prize in the category of ‘Effective and Innovative use of Digital Communication’ at the SCOPE Corporate Communication Awards in 2016.
  • 2016: Received an award that recognized the company as one of the ‘Top 50 PSU Organisations with innovative HR practices’ at the Asia Pacific HRM Congress organized by Times Ascent.
  • 2016: Received an award for ‘Technology Adoption’ at the 4th PSU Awards 2016.
  • 2017: Received the ‘Leadership Recognition Award’ in the “Internet & Broadband Services” category at the Voice & Data Telecom Leadership Awards, 2017.
  • 2017: Received an award in the ‘Best Public Wi-Fi Project’ category at the My India Wi-Fi India Summit and Awards 2017.
  • 2017: Received the ‘Certificate of Appreciation’ for the railway station wi-fi project initiative at the mBillionth award South Asia 2017.
  • 2018: Received an award in the ‘Best Social Wi-Fi Project’ category at the My India Wi-Fi India Summit and Awards 2018.
  • 2018: Received Voice & Data Telecom Leadership Award for Corporate Social Responsibility.
  • 2019: Received an award at the Digital Innovation and Cyber Security Summit 2019 organized by Department of Information Technology and Electronics, Government of Haryana.
  • 2019: Received Express Computer Digital Innovation award.
  • 2020: Received Governance Now PSU award 2020 in Digital PSU Category.
  • 2020: Received CSR Times Award as the Best PSU (Gold Category) in women empowerment category for its Menstrual Health Management Programme.
  • 2020: Received the Silver SKOCH Award in Digital Economy for e-office Category, 2020.

Major events and milestones

  • 2000: Incorporated as ‘Schedule A’ Central Public Sector Enterprise under the Ministry of Railways.
  • 2002: Obtained the license for infrastructure providers category – II (IP-2) license to start commercial operations of leasing bandwidth to private telecom companies.
  • 2012: Conferred ‘Mini Ratna Category-I’ status by Ministry of Railways, Government of India.
  • 2014: Completed the SASEC Regional Network Project and launched TpaaS services.
  • 2014: Incorporated wholly owned subsidiary – RailTel Enterprises Limited.
  • 2017: Crossed Rs 1,000 crore total income for the first time since company’s incorporation.
  • 2018: Implemented e-Office – paperless working system in South Central Railway HQ and Guntur division.
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