Railtel Corporation of India Ltd (543265) closes
at ₹125.60 with
a Loss of -1.70% on
14-May-2021 with formation of a Red Candle on Daily Price
Chart.
About the Company : RailTel
is a "Miniratna" PSE of Government of India focusing on providing
broadband and VPN services. RailTel was formed in 2000, with the objective of
creating nationwide broadband, telecom and multimedia network, to modernize
train control operation and safety system of Indian Railways. RailTel's network
passes through around 5,000 stations across the country, covering all major
commercial centers
Sector Update : Positive
Strength : Strong Orderbook Offers Revenue visibility mainly with
Indian Railways
Financials : Railtel
Corporation of India Ltd has posted Net Sales /
Revenue of ₹1128.10r &
Net Profit of ₹141.10 Cr in
FY2020 and expected to post Net Sales / Revenue of ₹1358.60 Cr &
Net Profit of ₹185.80 Cr in
FY2021 and Net Sales / Revenue of ₹1675.70 Cr &
Net Profit of ₹263.70Cr in
FY2022 ;Net Sales / Revenue of ₹2063.70 Cr &
Net Profit of ₹324.0 Cr in FY2023
and Net Sales / Revenue of ₹2445.0Cr & Net
Profit of ₹381.50 Cr in FY2024.Valuations : The Company is now
Trading at X 3.6 of its valuations
( last 4Quaters earnings considered here) with ~260 % premium and at X1.3 of its FY 2021, which is now almost ~30% premium to its
value and X 0.94 of its FY 2022 earning with a Discount of ~6% and X0.76 of its FY2023 earning with ~24% discount
to its valuations and ~35% Discount
to its FY2024 earnings.
Margin of Safety (1Yr Bond Yield: Value>1
) is now 0.40 which
makes is attractive after a ~60% fall in market price. The Equity Value Per Share ( Enterprise Value Method
) is ₹119.700
Whats
best in It : Railtel
Corporation of India Ltd is a Debt Free Company and now
available at EPS of 4.40 (FY2020), which will improve to 11.90 by FY2024,
If We factor its earnings/valuations, its Price arrives
at ₹256 with
consideration FY2024 earnings.
Disclaimer : We are / may going to take exposure shortly.
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Data
Source | NSE Website | Screener.In | Capital
Line | Money
Control |
The
author tracks economic, behavioural and corporate tends, hoping to gauge good
avenues of return based on Fundamental Valuations of Stocks, a follower of EPV
method. You can reach me/us at |
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