What RailTel Corporation do:-
RailTel corporation is a public sector, undertaking under the ministry of railway government of India. It provides telecom services to Indian railway and other customers.
It is one of the largest neutral telecom infrastructure in India, offering broadband leased line and VPN services to business government, organization, and individual
It offers data, center and cloud services hosting critical data for various organizations. Wi-Fi at many railway stations in India under Digital India initiative. It provides end to end information and communication technology solution, including project management system integration and consultancy services.
Key Statistics of RailTel Corporation
Metric Value
Share Holding pattern of RailTel
- Shareholder Category Percentage Holding
- Promoters 72.84%
- Foreign Institutional Investors (FIIs) 3.34%
- Domestic Institutional Investors (DIIs) 0.26%
- Public (Retail and Others) 23.56%
Financial of RailTel Corporation
Metric Q3 FY24 (₹ Crore) Q3 FY23 (₹ Crore) 9M FY24 (₹ Crore) 9M FY23 (₹ Crore)
Revenue from Operations 767.62 668.36 2,169.22 1,735.12
Net Profit 65.05 62.14 186.36 168.68
Earnings Per Share (EPS) 2.03 1.94 5.81 5.26
Why should we consider RailTel Corporation
As of January 2025, RailTel Corporation of India Ltd. reported an order book totaling approximately ₹5,280 crore. The company has been actively securing new contracts, including a recent order worth ₹17 crore from the Ministry of Defence. These ongoing acquisitions indicate a robust and expanding project pipeline for RailTel. Reltail has corrected 50% from from its all-time high and small cap PSU having 9844 cr cap and it has potential to give good returns in future. It has given approximately 3X returns in three years and it will be multi Bagger in future.
It must be in your portfolio for long run.
Cons of RailTel
This corporation has a strong present in the telecom infrastructure sector. It has several challenges like limited market, diversification, high competition, regulatory and bureaucratic challenge, technology of upgardation, cost dependence on public sector project,operational inefficiency, revenue, volatility, geographic concentration.
Declaration
This blog is for educational purpose, and not to the recommendation to buy this stock before buying this stock. Contact your financial advisor and do your own research.
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