RailTel Corporation of India Limited
RailTel Corporation of India Limited Fundamental Analysis
RailTel Corporation of India Limited (RAILTEL.BO) shows moderate financial fundamentals with a PE ratio of 29.64, profit margin of 8.10%, and ROE of 16.54%. The company generates $42.8B in annual revenue with strong year-over-year growth of 35.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RAILTEL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakRAILTEL.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateRAILTEL.BO shows balanced valuation metrics.
Growth Score
ExcellentRAILTEL.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRAILTEL.BO maintains a strong and stable balance sheet.
Profitability Score
WeakRAILTEL.BO struggles to sustain strong margins.
Key Financial Metrics
Is RAILTEL.BO Expensive or Cheap?
P/E Ratio
RAILTEL.BO trades at 29.64 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RAILTEL.BO's PEG of 1.91 indicates fair valuation.
Price to Book
The market values RailTel Corporation of India Limited at 4.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.29 times EBITDA. This signals the market has high growth expectations.
How Well Does RAILTEL.BO Make Money?
Net Profit Margin
For every $100 in sales, RailTel Corporation of India Limited keeps $8.10 as profit after all expenses.
Operating Margin
Core operations generate 11.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.54 in profit for every $100 of shareholder equity.
ROA
RailTel Corporation of India Limited generates $5.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RailTel Corporation of India Limited generates limited operating cash flow of $-2.15B, signaling weaker underlying cash strength.
Free Cash Flow
RailTel Corporation of India Limited generates weak or negative free cash flow of $-3.44B, restricting financial flexibility.
FCF Per Share
Each share generates $-10.71 in free cash annually.
FCF Yield
RAILTEL.BO converts -3.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How RAILTEL.BO Stacks Against Its Sector Peers
| Metric | RAILTEL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.64 | 23.97 | Worse (Expensive) |
| ROE | 16.54% | 990.00% | Weak |
| Net Margin | 8.10% | -58825.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.32 | 1.70 | Neutral |
| ROA | 5.94% | -6510.00% (disorted) | Weak |
RAILTEL.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RailTel Corporation of India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
208.22%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
112.49%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
47.30%
Industry Style: Growth, Technology, Streaming
High Growth