Prabhudas Lilladher recently issued a Buy Call on Railtel Corporation of India, along with a new Target Price for the company. Now, let’s examine the research reports and explore their overviews.
| Type | Public |
|---|---|
| Traded as | BSE: 543265NSE: RAILTEL |
| Industry | Telecommunications |
| Founded | September 2000 22 years ago |
| Services | Telepresence services, data centre services, MPLS-VPN, Internet leased line, consultancy services, signalling services, Adhaar based service |
| Website | www |
Railtel Corporation of India current market price is Rs 122.35 with a market capitalization of Rs 3917.05 Crore. Recently, Prabhudas Lilladher issued a Buy Call on the Railtel Corporation of India with a new Target Price of Rs 160.
Investment Rationale
Railtel Corporation of India Limited (Railtel) has recently experienced a significant correction, reaching a bottom around the 96 levels. However, since then, the stock has shown signs of recovery and has gradually gained momentum, improving its overall bias. This positive price action is reflected in the formation of a bullish candle pattern on the daily chart, signaling a potential buying opportunity.
Furthermore, the stock’s strength is evident as it has moved above two crucial moving average levels, namely the 200-day moving average (200DMA) and the 50-day exponential moving average (50EMA) at the price of 114. This crossing of moving averages further strengthens the bullish trend and suggests a potential upward movement in the stock’s price.
In addition to the price action and moving averages, the Relative Strength Index (RSI) is also in a favorable position. The RSI is a momentum oscillator that measures the speed and change of price movements. Its current upward trajectory indicates increasing buying pressure and suggests that the stock has the potential to continue its upward momentum.
Considering these technical factors, Railtel appears to be an attractive investment opportunity in the share market. The stock has shown signs of bottoming out, followed by a gradual uptrend and a bullish candle pattern formation. The crossing of significant moving average levels and the positive RSI further support the bullish case for Railtel.
Consolidated Total Income
For the quarter ended 31-12-2022, the company reported a consolidated total income of Rs 462.17 crore, which represents a 5.02% increase compared to the previous quarter’s total income of Rs 440.09 crore. However, it indicates a decrease of -2.53% when compared to the total income of Rs 474.15 crore in the same quarter of the previous year. This suggests that the company’s total income has experienced some fluctuations over time.
Net Profit After Tax
In the latest quarter, the company reported a net profit after tax of Rs 31.95 crore. This figure represents the company’s earnings after deducting taxes and other expenses. It is important to note that the net profit after tax is a crucial metric to assess a company’s profitability and financial health.
As of 31-12-2022, the company has a total of 32 crore shares outstanding. Shares outstanding refers to the total number of shares issued by the company and held by investors.
Ownership Structure
Here’s a table summarizing the ownership structure of the company as of 31-Dec-2022
| Ownership | Stake |
|---|---|
| Promoters | 72.84% |
| Foreign Institutional Investors (FIIs) | 1.03% |
| Domestic Institutional Investors (DIIs) | 4.19% |
Disclaimer:– This share price target price should not be taken as a guarantee or prediction of future stock performance, nor should it be considered as investment advice. We strongly advise investors to conduct their own research and analysis before making any investment decisions and to seek the advice of a financial advisor if necessary. Sharedhan.com or its representatives shall not be held liable for any losses or damages incurred as a result of reliance on this share price target price.
