Miniratna PSU Stock Fixes Record Date For Dividend, Gets Buy Call For 28% Return

Miniratna stock, RailTel Corporation of India Ltd has fixed February 8, 2023 as the record date for payment of interim dividend for FY 2023, if declared. The small cap stock, operating in Telecommunications sector, soared 31% in last 6-months, and 8% in last
1-year.

Meanwhile, brokerage firm ICICI Securities in its November 15, 2022 report assigned buy call to RailTel Corporation with a target price of Rs 160 apiece that implies the stock will offer likely 28% return to investors, if they buy it now. Check details below:

1. RailTel Corporation of India Stock Performance

The current market price of the stock is Rs 125.00 apiece on BSE with intraday decline of 0.40% till 1:51 pm on January 25, 2023. The stock's 52-week high is Rs 148.70 apiece and 52-week low is Rs 84.00 apiece, respectively. The company has a market capitalisation of Rs 4,008.52 crore.

2. RailTel Corporation of India Return & Financial Outlook

The small cap stock has given a return of 9% in last 1-month, 10% in last 3-months, 31% in last 6-months, and 8% in last 1-year. It offered over 2% return in last 5-years. The stock for the quarter ended September 30, 2022 announced a consolidated total income of Rs 440.09 crore, up 14.28% from previous quarter total income of Rs 385 crore.

3. Valuation

According to ICICI Securities, "We increase our EPS estimates by 3-11% over FY23EFY24E, and target price to Rs160 (from Rs120), as we raise the P/E multiple to 18x FY24E EPS (earlier: 17x). Maintain BUY. Risks: Slower revenue growth particularly in project services, and lower margins in telecom services."

4. RailTel Corporation of India About

RailTel Corporation a "Mini Ratna (Category-I)" PSU is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optical fiber network. RailTel is committed to bring cutting edge technology and offer innovative services to the Indian Telecom market.

RailTel is in the forefront in providing nationwide Broadband Telecom & Multimedia Network in all parts of the country in addition to modernization of Train operations and administration network systems, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.