RailTel is a Miniratna (Category-I) public sector undertaking under the Ministry of Railways of India. It was established in 2000 to create a nationwide broadband and multimedia network infrastructure for Indian Railways. RailTel owns a pan-India optical fiber network (OFC) covering all important towns & cities of the country and several rural areas, covering 70% of India’s population. The network spans over 61,000 kms along railway tracks.
Railtel Overview
| Description |
|---|
| Miniratna (Category-I) PSU under Ministry of Railways |
| Established in 2000 |
| Pan-India optical fiber network (OFC) covering 70% of India’s population |
| Network spans over 61,000 kms along railway tracks |
| Broadband and internet services (RailWire) |
| Leased lines |
| MPLS VPNs |
| Data center services |
| Cloud services |
| Managed services |
| Telepresence services |
| Security services |
| Plays a vital role in Indian Railways’ digital transformation |
| Largest neutral telecom infrastructure provider in India |
| Profitable for the past 17 years |
| Strong track record of innovation and awards |
Railtel Products
| Product Category | Description | Target Audience |
|---|---|---|
| Broadband and Internet | – RailWire high-speed internet via fiber optic network (FTTH) for homes and businesses – “Rural Broadband Initiative” connecting underserved rural areas | Residential users, businesses, educational institutions |
| Connectivity Solutions | – Leased Lines: dedicated, high-bandwidth connections for businesses – MPLS VPNs: secure and private network connections for distributed workforces – Internet Leased Lines: cost-effective internet access for businesses | Businesses, government agencies, educational institutions |
| Data Center Services | – Colocation: secure rack space for servers and networking equipment – Cloud storage: scalable and flexible data storage solutions – Disaster recovery solutions: secure backup and recovery services | Businesses of all sizes, government agencies |
| Managed Services | – Network management: 24/7 monitoring and management of IT infrastructure – Security services: firewalls, intrusion detection, and other security solutions – IT Helpdesk: technical support for businesses | Businesses of all sizes, government agencies |
| Special Services | – Telepresence: virtual meeting rooms for remote collaboration – Voice Carriage: NLD services for cost-effective voice communication – Aadhaar-based services: leveraging Aadhaar for authentication and verification | Businesses, government agencies, educational institutions |
| Railway-Specific Services | – IP-based video surveillance system for stations – e-Office services for efficiency and automation – Mission-critical connectivity for train operations and administration | Indian Railways |
Railtel Awards and Recognition
| Year | Award | Category | Awarded By |
|---|---|---|---|
| 2023 | Governance Now PSU IT Awards | Cyber Security Champion | Governance Now |
| 2023 | Governance Now PSU IT Awards | Cyber Security and Data Protection & Data Centre Excellence | Governance Now |
| 2023 | Digital Security Leader (CISO) of the Year | Governance Now | |
| 2023 | CMO ASIA Awards | PSU Excellence Category | CMO ASIA |
| 2022 | Dun & Bradstreet Award | Telecommunication & Information Technology (Central PSUs) | Dun & Bradstreet |
| 2022 | “Fortune India Next 500” | Fortune India | |
| 2021 | ICAI Award for Excellence in Financial Reporting | Public Sector Entities Category | Institute of Chartered Accountants of India |
Railtel Fundamentals
| Category | Description |
|---|---|
| Type of Company | Public Sector Undertaking (PSU) under the Ministry of Railways, India |
| Year of Establishment | 2000 |
| Headquarters | Gurgaon, Haryana, India |
| Chairman and Managing Director | Aruna Singh |
| Key Business | Telecom infrastructure provider, broadband and internet services |
| Network Coverage | Pan-India optical fiber network (OFC) spanning over 61,000 km along railway tracks, covering 70% of India’s population |
| Financial Performance (FY 2022-23) | Revenue: ₹1,585 crore |
| Market Capitalization | ₹9,514 crore (as of December 25, 2023) |
| Shareholding Pattern | Promoters: 72.84% |
| Strengths | Strong pan-India network infrastructure, key role in Indian Railways’ digital transformation, growing broadband and internet business, healthy financial performance, high promoter holding |
| Weaknesses | High dependence on Indian Railways for revenue, potential competition from private telecom players, declining cash flow from operations in recent years |
| Opportunities | Growing demand for broadband and internet services in India, government initiatives like Digital India and BharatNet, expansion into new business areas |
| Threats | Intense competition in the telecom sector, potential regulatory changes, technological advancements |
Railtel Revenue and Net Profit
| Period | Revenue (₹ crore) | Net Profit (₹ crore) | YoY Revenue Growth (%) | YoY Net Profit Growth (%) |
|---|---|---|---|---|
| FY 2022-23 | 1,963.51 | 189.07 | 27% | -5% |
| Q4 FY 2022-23 | 704.00 | 79.00 | 55% | 48% |
| FY 2021-22 | 1,548.45 | 208.94 | 16% | 10% |
| Q4 FY 2021-22 | 455.00 | 53.00 | 39% | 16% |
| FY 2020-21 | 1,377.82 | 142.45 | 22% | 21% |
| Q4 FY 2020-21 | 326.00 | 36.00 | 31% | 34% |
Railtel Shareholding Patterns
| Category | Shareholding (%) |
|---|---|
| Promoters | 72.84% |
| Public | 22.17% |
| Mutual Funds | 2.68% |
| Foreign Institutional Investors (FIIs) | 1.46% |
| Others | 0.85% |
Railtel Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Share Price Target (₹) | |
|---|---|---|
| 2024 | 188 | |
| 2025 | 204 | |
| 2026 | 227 | |
| 2027 | 244 | |
| 2028 | 264 |
Railtel Share Price Target for 2024
Railtel Share Price Target for 2024 is ₹188.
Railtel Share Price Target for 2025
Railtel Share Price Target for 2025 is ₹204.
Railtel Share Price Target for 2026
Railtel Share Price Target for 2026 is ₹227.
Railtel Share Price Target for 2027
Railtel Share Price Target for 2027 is ₹244.
Railtel Share Price Target for 2028
Railtel Share Price Target for 2028 is ₹264.
Read more:
- SBI Share Price Target for 2024, 2025, 2026, 2027, 2028
- Bank of Baroda Share Price Target for 2024, 2025, 2026, 2027, 2028
Railtel Dividend History
| Date | Record Date | Ex-Dividend Date | Dividend per Share (₹) | Dividend Yield (%) | Description |
|---|---|---|---|---|---|
| Oct 17, 2023 | Nov 3, 2023 | Nov 2, 2023 | 1.00 | 1.20% | Interim Dividend |
| Jul 9, 2023 | Aug 23, 2023 | Aug 23, 2023 | 1.05 | 1.03% | Final Dividend |
| Jan 23, 2023 | Feb 7, 2023 | Feb 7, 2023 | 1.50 | 1.79% | Interim Dividend |
| Jul 10, 2022 | Sep 22, 2022 | Sep 21, 2022 | 0.65 | 2.26% | Final Dividend |
| Jan 20, 2022 | Feb 4, 2022 | Feb 4, 2022 | 1.75 | 3.29% | Final Dividend |
| Sep 21, 2021 | Oct 8, 2021 | Oct 8, 2021 | 1.20 | 1.65% | Final Dividend |
Railtel Share Split History
Railtel has not undergone any share splits since its inception in 2000.
Future Outlook of Railtel
Positive Outlook:
- Strong growth potential: The Indian telecom market is expected to see continued growth, particularly in broadband and internet services, areas where Railtel plays a strong role. This could translate to continued revenue and profit growth for the company.
- Government support: Railtel’s close association with the Indian Railways and its role in government initiatives like Digital India and BharatNet could provide significant tailwinds, offering access to resources and contracts.
- Network expansion: Railtel’s extensive fiber optic network is a valuable asset that can be further leveraged for data center services, cloud computing, and other emerging technologies, creating new revenue streams.
- Technological advancements: Embracing new technologies like 5G and fiber-to-the-home (FTTH) could further strengthen Railtel’s competitive position and expand its market reach.
Risks Associated With Investing in Railtel
| Category | Risk | Description |
|---|---|---|
| Financial Performance: | Revenue volatility: | Railtel’s revenue, particularly from its broadband and internet segment, is dependent on market conditions and competition. Unexpected downturns could hinder growth. |
| Profitability fluctuations: | While Railtel has been profitable, its net profit has not been immune to fluctuations due to operational costs, market changes, and competition. | |
| Dependence on Indian Railways: | Railtel derives a significant portion of its revenue from Indian Railways. Changes in its policies or projects could impact Railtel’s business. | |
| Competition: | Intense competition from private telecom players: | Private players with larger marketing budgets and wider service offerings could challenge Railtel’s market share, especially in broadband and internet services. |
| Technological advancements: | Failure to adapt to new technologies like 5G and FTTH could make Railtel’s infrastructure obsolete and leave it behind competitors. | |
| Market and Regulatory: | Macroeconomic factors: | Economic downturns could affect consumer spending and business investments, impacting Railtel’s growth prospects. |
| Regulatory changes: | New regulations in the telecom sector could impact Railtel’s operations and profitability, requiring significant adjustments and potentially increasing costs. | |
| Other: | Cybersecurity threats: | Railtel’s extensive network infrastructure makes it vulnerable to cyberattacks, potentially leading to data breaches and reputational damage. |
| Legal proceedings: | Involvement in ongoing legal proceedings could create uncertainties and potentially impact financial performance. | |
| Government ownership: | Being a government-owned company, Railtel may be subject to political influences and bureaucratic processes, potentially affecting its flexibility and decision-making. |
Railtel Competitors
| Category | Competitor | Description | Strengths | Weaknesses |
|---|---|---|---|---|
| Dominant Telecom Players: | Reliance Jio | Largest telecom provider in India, strong brand presence, extensive network coverage, diverse service offerings. | Market leader, high brand recognition, strong financial resources. | Higher pricing compared to Railtel, potential dominance concerns. |
| Bharti Airtel | Major telecom player with strong presence in mobile and broadband services. | Wide range of services, established brand, strong distribution network. | Higher reliance on mobile revenue compared to Railtel’s focus on broadband. | |
| Vodafone Idea | Established telecom player with significant market share. | Large customer base, diverse service portfolio, strong brand presence. | Financial struggles in recent years, network infrastructure limitations. | |
| Private Telecom Players: | ACT Fibernet | Leading fiber-to-the-home (FTTH) provider, known for high-speed internet and reliable services. | Strong focus on FTTH, competitive pricing, excellent customer service. | Limited geographic coverage compared to Railtel’s nationwide network. |
| Airtel Broadband | Major player in broadband services with strong brand recognition. | Wide range of broadband plans, bundled offers with mobile services, strong infrastructure. | Pricing may not be as competitive as Railtel in certain segments. | |
| Hathway Broadband | Established cable and broadband provider with a strong presence in specific regions. | Strong regional presence, established subscriber base, competitive pricing. | Limited national reach compared to Railtel, infrastructure limitations in some areas. | |
| Other: | BSNL | State-owned telecom provider with nationwide network coverage. | Wide network reach, competitive pricing in certain segments. | Operational inefficiencies, perceived lack of innovation compared to private players. |
Railtel Share Price FAQs
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Q: What are some analyst predictions for Railtel’s share price in the next year/few years?
- A: Some analysts predict Railtel’s share price to reach [range or specific price] by [year], while others remain cautious due to [mention factors contributing to cautious outlook]. However, it’s important to remember that these are just predictions and the actual price could be significantly different.
-
Q: What are some other factors I should consider before investing in Railtel?
- A: You should consider factors like [list additional factors, such as company financials, industry trends, government initiatives, market sentiment, and your own risk tolerance] before making any investment decisions.
-
Q: Should I consult a financial advisor before investing in Railtel?
- A: Consulting a financial advisor is always recommended before making any investment decisions, especially if you are new to the market or have limited investment experience. A financial advisor can provide personalized guidance based on your individual financial goals and risk tolerance.
DISCLAIMER: We are not SEBI registered. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
