Miniratna PSU Stock Sets Record Date For Dividend, ICICI Securities Says Invest

RailTel Corporation a "Mini Ratna (Category-I)" PSU is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network on exclusive Right of Way (ROW) along Railway track. The OFC network covers all important towns & cities of the country and several rural areas covering 70% of India's population.

RailTel with strong nationwide presence is committed to bring cutting edge technology and offer innovative services to the Indian Telecom market. The company has a zero-debt burden.

Railtel Sets Record Date For Final Dividend

The board of directors of the company in its regulatory filing stated, "The Company has fixed Friday, 23rd September, 2022 as "Record Date" for the purpose of determining the eligibility of Members entitled to receive the Final Dividend of Rs. 0.65/- per share for the FY 2021-22 recommended by the Board of Directors of the Company in their meeting held on 09th July, 2022. The Final Dividend, if approved at the AGM, will be paid within 30 days from the date of its declaration at the AGM."

Therefore, the record date for dividend is September 23, 2022.

RailTel Corporation stock outlook and market capitalization

The current market price of the small cap stock is Rs 106 apiece. The company has a market capitalization of Rs 3409 crore.

RailTel Corporation 52-week high/low

The stock's 52-week high is quoted at Rs 153 apiece and 52-week low is quoted at Rs 84 apiece.

Railtel Gets Buy Rating

ICICI Securities, a leading brokerage firm, in its 3 weeks back report, has recommended buy rating for the stock of Railtel Corporation of India (Railtel) for a target price of Rs 120 apiece. If the stocks of the company are bought by the investors at the current market price, the investors can expect potential gains of 13% in 12 months.

Railtel EBITDA rose 12% YoY (down 31% QoQ)

Railtel revenue rose 23% YoY (dipped 19% QoQ) to Rs3.8bn. Telecom services revenue grew 18.6% YoY (down 8.2% QoQ) to Rs2.7bn. Project revenue rose 35.7% YoY (down 38.4% QoQ) to Rs1bn. Employee costs increased 33% YoY (fell 17% QoQ) to Rs516mn while SG&A expenses benefited from lower ECL and fell 50% YoY to Rs175mn. EBITDA rose 12% YoY to Rs670mn. Net profit increased 22% YoY (down 52% QoQ - also impacted by lower other income, down 63% QoQ) to Rs259mn, according to ICICI Securities report.

About Railtel Corporation

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. With its Pan India high capacity network, RailTel is working towards creating a knowledge society at various fronts.

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.