Railtel Corporation of India Ltd
NSE:RAILTEL

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Railtel Corporation of India Ltd Logo
Railtel Corporation of India Ltd
NSE:RAILTEL
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Price: 323.55 INR -0.95% Market Closed
Market Cap: ₹103.8B

EV/IC

2.9
Current
26%
Cheaper
vs 3-y average of 3.9

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.9
=
Enterprise Value
₹88.4B
/
Invested Capital
₹31.2B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.9
=
Enterprise Value
₹88.4B
/
Invested Capital
₹31.2B

Valuation Scenarios

Railtel Corporation of India Ltd is trading below its 3-year average

If EV/IC returns to its 3-Year Average (3.9), the stock would be worth ₹438.21 (35% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-22%
Maximum Upside
+35%
Average Upside
3%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.9 ₹323.55
0%
3-Year Average 3.9 ₹438.21
+35%
5-Year Average 3 ₹337.34
+4%
Industry Average 2.7 ₹302.61
-6%
Country Average 2.3 ₹253.77
-22%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
P/E Multiple
Earnings Growth PEG
IN
Railtel Corporation of India Ltd
NSE:RAILTEL
Average P/E: 45.3
32.6
18%
1.8
US
EchoStar Corp
NASDAQ:SATS
Negative Multiple: -1.3 N/A N/A
US
AST SpaceMobile Inc
NASDAQ:ASTS
Negative Multiple: -77.7 N/A N/A
US
G
Globalstar Inc
AMEX:GSAT
Negative Multiple: -543.3 N/A N/A
US
Lumen Technologies Inc
NYSE:LUMN
Negative Multiple: -5.6 N/A N/A
ID
Indoritel Makmur Internasional Tbk PT
IDX:DNET
107
N/A N/A
US
Iridium Communications Inc
NASDAQ:IRDM
39.5
18%
2.2
UK
Liberty Global PLC
NASDAQ:LBTYA
Negative Multiple: -0.6 N/A N/A
BM
Liberty Global Ltd
F:3O41
Negative Multiple: -0.5 N/A N/A
MY
T
TIME dotCom Bhd
KLSE:TIMECOM
26.1
11%
2.4
JP
U-Next Holdings Co Ltd
OTC:USNNF
21.2
10%
2.1

Market Distribution

In line with most companies in India
Percentile
58th
Based on 2 828 companies
58th percentile
2.9
Low
0 — 1.3
Typical Range
1.3 — 4.2
High
4.2 —
Distribution Statistics
India
Min 0
30th Percentile 1.3
Median 2.3
70th Percentile 4.2
Max 4 185.7

Railtel Corporation of India Ltd
Glance View

Railtel Corporation of India Ltd. is a compelling narrative woven into the very fabric of the nation’s infrastructure, intertwining technology and transportation. Founded in 2000, Railtel is a public sector enterprise under the Ministry of Railways with the strategic objective of transforming railway communication networks into nationwide assets. It primarily leverages the Indian Railways' expansive infrastructure to offer a vast array of telecommunications services. This unique synergy positions Railtel as one of the largest neutral telecom infrastructure providers in India. The company stands out in its ability to utilize over 60,000 kilometers of optic fiber network spanning across the country, thus bridging urban-rural digital divides and empowering businesses with broadband, VPN, and data center services. This robust network not only serves railways but extends its reach to various government and private sectors, underlining its pivotal role in propelling India's digital evolution. Behind this technological marvel is a pragmatic revenue model that capitalizes on its vast network capabilities. Railtel not only earns by leasing its fiber-optic bandwidth to telecom operators but also through comprehensive managed network services. Additionally, its service portfolio includes providing data center co-location and cloud services, ensuring robust digital infrastructure for businesses across the spectrum. Moreover, Railtel has capitalized on its strategic infrastructure by developing high-speed public Wi-Fi at Indian railway stations, transforming them into digital hubs. This approach does not merely serve passengers but also extends to local businesses and communities, generating additional revenue streams. Railtel's commitment to digital inclusion and infrastructure development is evident in its continued expansion and innovative service offerings, keeping it at the forefront of India’s technological renaissance.

RAILTEL Intrinsic Value
288.4 INR
Overvaluation 11%
Intrinsic Value
Price ₹323.55
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