Railtel Share Price Target 2024 to 2025: The Indian telecom sector is expanding quickly. We are going to study the company from the same sector. This article provides an in-depth look at Railtel’s business and market potential. Based on the fundamental and technical analysis, we will offer share price targets from 2024 to 2030.
What is Railtel Corporation of India Limited?
Railtel Corporation of India Ltd. is a public sector Industry, that was founded in 2000. It’s a subsidiary company of Indian Railways. It is a government-owned company under the Ministry of Railways. Recently it has been awarded Mini Ratna Status . Railtel has been providing broadband and telecom services all over India.
Expertise of Railtel Corporation of India
In recent years, RailTel has changed from providing only Internet connections to offering various tech services. RailTel has identified various areas for the future requirements of the Enterprise and government sectors. It is working on these future requirements. These areas will have a huge impact on its share price.
Expertise of Railtel Corporation
It has expertise in many areas, some of those we have listed in the slide show.
Vision
“Our Vision is to become the preferred telecom solutions and services provider for knowledge economy.”
Mission
“To attain leadership in providing premier telecom infrastructure service by offering the cost-effective state of the art communication solutions.”
Fundamental Analysis of Railtel Share Price Target
You can take a quick look at the fundamental ratios and Performance of Railtel Ltd.
Fundamental Ratios
The values shown in the tables below reflect RailTel’s recent financial health. They highlight its focus on stability and moderate growth with limited.
| Metric | Value | Comments |
|---|---|---|
| Sales Growth | 3-Year: 24%, TTM: 30% | Strong sales growth, especially in recent quarters. |
| Profit Growth | 3-Year: 24%, TTM: 44% | High growth in recent profits, showing recovery momentum. |
| EPS (FY 2024) | ₹8.00 | Stable earnings with growth potential. |
| Dividend Payout | 37% | Following a Balanced approach between reinvestment and dividends. |
| Return on Equity (ROE) | Last Year: 15% | Good ROE, which indicates effective capital management. |
| Debt – Equity Ratio | Minimum debt | Low leverage, Help to reduce financial risk. |
| Cash Flow (FY 2024) | Operating: ₹556 Cr, Net: ₹60 Cr | Good operational cash flow, moderate net flow. |
Profit and Loss
| Metric | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Sales | 1,081 | 1,337 | 1,522 | 1,957 | 2,658 |
| Expenses | 747 | 1,010 | 1,154 | 1,578 | 2,193 |
| Operating Profit | 333 | 328 | 368 | 379 | 465 |
| OPM % | 31% | 24% | 24% | 19% | 17% |
| Other Income | -18 | 28 | 76 | 35 | 28 |
| Interest | 4 | 2 | 4 | 6 | 6 |
| Depreciation | 131 | 159 | 160 | 154 | 158 |
| Profit Before Tax | 181 | 195 | 280 | 254 | 328 |
| Tax % | 24% | 28% | 25% | 26% | 25% |
| Net Profit | 138 | 140 | 208 | 188 | 246 |
| EPS in Rs | 4.31 | 4.37 | 6.49 | 5.87 | 7.67 |
| Dividend Payout % | 49% | 50% | 37% | 43% | 37% |
You can simply understand company performance by below graphical presentation shown below-
- Sales and Profit figures have shown significant growth, especially from 2020 to 2024.
- Operating profit margin (OPM) has been seen fluctuating, indicating changing profitability dynamics.
Shareholding Pattern
Here’s the recent shareholding data for Railtel Corporation
| Metric | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|
| Promoters | 72.84% | 72.84% | 72.84% | 72.84% |
| FII’s | 2.47% | 0.54% | 0.26% | 0.38% |
| DII’s | 0.23% | 0.09% | 0.22% | 0.25% |
| Public | 24.46% | 26.53% | 26.48% | 26.53% |
Fore details about the company please visit- Railtel Corporation of India Ltd.
Peers
| Company | P/E Ratio | Comments |
|---|---|---|
| Bharti Airtel | 98.8 | Significantly higher P/E; suggests high growth expectations. |
| Reliance Jio | 26.5 | A negative P/E indicates recent losses; less favorable than Railtel. |
| Mahanagar Telephone Nigam (MTNL) | -0.97 | Negative P/E indicates recent losses; less favorable than Railtel. |
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Technical Analysis of Railtel Share Price Target
Historical Price Analysis
You would have made a substantial profit if you invested at Railtel bottom price of ₹84. The investment would have yielded 16X returns, reaching ₹616. If you had invested ₹1,00,000/- then it would have become ₹16,00000/-.
We believe that it will also give the same returns in the future. It had consolidated for approximately 3 years and then given blockbuster returns within a year.
Railtel Share Price Target 2024:
Below is the Daily candlestick chart of Railtel. If we look at the chart, it has made sloping resistance and horizontal support.
The best accumulation of shares can be done at shown support levels. The Railtel stock is buy in the zone of ₹340 to ₹360. The stop loss is about ₹300. Railtel’s share price target for the year 2024 is estimated to be ₹500 to 550. It is a very short Term Target.
| Details | Target 1 | Target 2 |
| Railtel Share Price Target 2024 | 500 | 550 |
Railtel Share Price Target 2025
We have shown the weekly chart of Railtel Share. There is not much difference between daily and weekly support and resistance of the share. The Railtel share price Target for the year 2025 is estimated to be ₹800 to ₹850. We have to consider the same stop loss of ₹300. If someone buys the share at 350, they should look for a target of 850. This would result in almost a 150% return.
| Details | Target 1 | Target 2 |
| Railtel Share Price Target 2025 | 800 | 850 |
Railtel Share Price Target 2026 to 2030:
For Long-term investment purposes, we have to consider a monthly chart of railtel share. With a monthly chart, we can have a prediction for 5 years also.
From above chart, the monthly support stands at 340 to 350 zone. The monthly resistance of the share stands at 500 to 550 zone. once it breaks the zone it will again start to fly in the sky. The railtel share price target by 2030 is ₹2000. Lets break the year wise target of Railtel share from 2026 to 2030.
| Railtel Share Price Target Years | Railtel Share Price Target |
| 2026 | 1000 |
| 2027 | 1200 |
| 2028 | 1400 |
| 2029 | 1600 |
| 2030 | 2000 |
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Key Growth Drivers
What will Drive Railtel growth over the next few years?
Infrastructure Expansion
Especially in underserved areas, RailTel is committed to growing its internet and telecommunications infrastructure. This will help increase revenue by reaching out to new clientele.
Brand Trust and Quality
RailTel is known for its reliable services. It has built strong customer loyalty among railways and other sectors. This loyalty helps maintain its competitive edge.
Domestic and International Expansion
The company is looking to expand its services within India. It is also considering expanding internationally. This will allow it to reach new markets and enhance its revenue streams.
Rising Demand for Digital Connectivity
As digital transformation accelerates, the demand for broadband and data services is increasing. RailTel’s focus on expanding its offerings can significantly boost its revenue.
Distribution Network Expansion
Market share will increase if service penetration is increased in both rural and urban areas.
Product Innovation
RailTel is investing in innovative solutions. These include smart city initiatives and IoT services. The goal is to attract a broader range of customers.
Strategic Partnerships
Partnerships with government agencies and digital companies will boost growth by extending RailTel’s capabilities and reach.
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Challenges and Risks
No investment is risk-free. A few for RailTel are as follows:
Market Competition
The telecoms industry in India is highly competitive compared to other global countries. Major players include Airtel, Jio, and Vodafone-Idea. This competition could impact pricing strategies.
Economic and Regulatory Risks
The telecom industry is sensitive to regulatory changes and its implementation costs. Shifts in government policies will affect profitability.
Long-Term Investment Potential
Future Outlook
RailTel is a good long-term investment option. This is due to its goals for continued growth and its outstanding reputation in the digital services industry. In the upcoming years, there could be significant returns.
Investment Recommendations
Several brokerage firms are analyzing RailTel’s stock. Below are some target price predictions that investors will find useful.
| Brokerage Firm | Target Price (INR) | Comments |
|---|---|---|
| Motilal Oswal | ₹600 | An optimistic outlook based on infrastructure growth. |
| ICICI Direct | ₹675 | An optimistic outlook reflects strong performance trends. |
| Axis Securities | ₹550 | Based on current market conditions, the outlook is moderate. |
| Kotak Securities | ₹900 | Favorable view aligned with growth plans. |
Key Takeaway
For patient investors, RailTel presents significant long-term investment potential. Confident investors in RailTel’s capabilities might consider investing. The increasing need for digital connectivity also supports this decision.
FAQ
What is Railtel share Price target for 2024?
Railtel share Price target for 2024 is ₹500 to ₹550.
What is Railtel share Price target for 2025?
Railtel share Price target for 2025 is ₹800 to ₹850.
What is Railtel share Price target for 2027?
Railtel’s share Price target for 2027 is ₹1200.
What is Railtel share Price target for 2030?
Railtel share Price target for 2027 is ₹1400.
Is RailTel a good buy for long term?
Yes, The Railtel is very good for a Long term by, with at least 5 Times the Returns.
What is the prediction of RailTel share?
Railtel Share price will rise 5 times within 5 years.
What is Railtel share price Target for Long-term?
Railtel share price for long term is ₹2000.
What is the target of RAILTEL?
Railtel share price target is minimum ₹2000.
Disclaimer– The views shared here are only for educational purposes. We are not SEBI registered.Please take advice from your personal finance adviser. We are not responsible for any loss incurred by you in the above shared study.
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