Rs 5,280 crore Order Book: This PSU Railway Company Declares 10 per cent Interim Dividend for FY 2024-25 - Do you own this?

With a PE ratio of 33.1x, the company trades at a discount compared to the industry PE of 35.9x. The company has ROCE of 20.2 per cent and ROE of 15.2 per cent.  

RailTel Corporation of India Limited, a Navratna public sector undertaking, has announced a 10 per cent interim dividend on its paid-up share capital, equating to Rs.1 per share. This decision was made during the company's recent board meeting. The record date for this interim dividend is set for 2nd April 2025, with the payment or dispatch of the dividend warrant scheduled for 9th April 2025.

RailTel was incorporated in 2000, with the objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernize the train control operation and safety system of Indian Railways. It is a "Navratna" PSU of the Government of India. At present, RailTel's network passes through around 6,000 stations across the country, covering all major commercial centers.

RailTel Corporation of India Limited is currently trading at Rs.289.2 with a market capitalisation of Rs.9,405.1 crores. The stock has experienced a 52-week high of Rs.618 and a low of Rs.265.3. Over the past year, the stock has seen a decline of 28.62 per cent, but it has delivered a significant 216.3 per cent return over a three-year period, qualifying it as a multibagger stock. The company's price-to-earnings (PE) ratio stands at 46.3, reflecting its valuation in the market. As a Navratna PSU, RailTel continues to be a significant player in the telecommunications sector. Company has been maintaining a healthy dividend payout of 39.2 per cent.

In the Quarterly Results of December 2024, the company reported revenue of Rs 767.62 crore, reflecting a YoY growth of 14.85 per cent but a QoQ decline of 8.99 per cent from Rs 843.49 crore in September 2024. Net profit stood at Rs 65.05 crore, marking a 4.68 per cent increase YoY from Rs 62.14 crore but a 10.45 per cent decline QoQ from Rs 72.64 crore. The net profit margin was 8.47 per cent, compared to 8.61 per cent in the previous quarter and 9.30 per cent in December 2023.

For the full-year FY24, the company reported revenue of Rs 2,567.82 crore, showing a 31.19 per cent growth from Rs 1,957.34 crore in FY23. Net profit for the year was Rs 263.89 crore, an increase of 42.77 per cent from Rs 218.65 crore in the previous year. The net profit margin improved to 8.52 per cent in FY24 from 7.82 per cent in FY23.

As of December 2024, the shareholding pattern remains largely unchanged. Promoters hold 72.84 per cent, consistent across all quarters. Foreign Institutional Investors (FIIs) increased their stake to 3.34 per cent from 3.05 per cent in the previous quarter. Domestic Institutional Investors (DIIs) reduced their holding to 0.36 per cent from 0.61 per cent. The public shareholding remains stable at 23.45 per cent compared to 23.51 per cent in the last quarter.

With a PE ratio of 33.1x, the company trades at a discount compared to the industry PE of 35.9x. The company has ROCE of 20.2 per cent and ROE of 15.2 per cent.  

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.