Railtel Corporation Of India Ltd.
ISIN: INE0DD101019 • Market Cap: ₹9,206 Cr
The 5-Pillar Quality Audit for Railtel Corporation Of India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.7%), Return on Capital Employed (20.8%), and equity compounding (15.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (14.2%) and 3Y PAT CAGR (12.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 26.61 vs PEG of 1.84 and Dividend Yield of 1.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 72.8%, backed by 5.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 20.8%)
Railtel Corporation Of India Ltd. generates exceptional return on capital employed of 20.8%, reflecting pricing power and competitive moat.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Telecommunication)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Telecommunication space.
Quantitative Strategy Eligibility
Checking RAILTEL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 74/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Telecommunication Sector Peer Comparison
Compare RAILTEL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Railtel Corporation Of India Ltd. (RAILTEL)Current | 74/100 | ₹9,206 Cr | 26.61 | 20.8% | 0.00 | — |
| Vodafone Idea Ltd. (IDEA) | 65/100 | ₹1.52 Lakh Cr | 4.07 | -1.7% | -4.18 | View |
| Indus Towers Ltd. (INDUSTOWER) | 76/100 | ₹97,876 Cr | 13.68 | 18.4% | 0.02 | View |
| Bharti Hexacom Ltd. (BHARTIHEXA) | 79/100 | ₹79,950 Cr | 43.83 | 23.9% | 0.38 | View |
| Tata Communications Ltd. (TATACOMM) | 59/100 | ₹47,330 Cr | 50.04 | 17.0% | 3.14 | View |
| HFCL Ltd. (HFCL) | 62/100 | ₹34,668 Cr | 60.55 | 8.6% | 0.37 | View |
Frequently Asked Questions: Railtel Corporation Of India Ltd.
Q:What is the 5-Pillar Fundamental Score for Railtel Corporation Of India Ltd. (RAILTEL)?
Railtel Corporation Of India Ltd. has a RupeeTools Fundamental Score of 74/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (77/100), Financial Health (85/100), Growth (70/100), Valuation (63/100), and Ownership Quality (65/100).
Q:Is RAILTEL fundamentally strong for long-term investment?
Yes, RAILTEL exhibits solid fundamental strength with a 74/100 score, driven by a return on equity of 15.3% and a debt-to-equity ratio of 0.00.
Q:Does RAILTEL pass the Coffee Can Investing filter?
Yes! RAILTEL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does RAILTEL compare against other Telecommunication peers?
Within India's Telecommunication sector, RAILTEL trades at a P/E of 26.61 and generates an ROCE of 20.8%. Compare its 5-Pillar score of 74/100 against top sector peers like Vodafone Idea Ltd. (65/100), Indus Towers Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.