Railtel Q1 Results Review - Eyeing Big Order Flow From Indian Railway: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Railtel Corporation of India Ltd. Q1 FY25 net profit grew 27% YoY to Rs 487 million which is within the company’s guidance of growth of 25–30%. Railtel expects telecom revenue to grow 9–10% while projects’ revenue is anticipated at Rs 20 billion driving total revenue growth of 25-30% in FY25E.Considering the project business’ Ebit margins are only 5–6%, achieving guided stable margin for FY25 can be challenging arithmetically. Railtel hopes for an acceleration in its order book driven by the large capex planned by Indian Railway; it plans to bid for Kavach implementation immediately.We raise our earning per share estimates by ~3% for FY25–26E on lower depreciation cost. Our target price is revised higher to Rs 315 (from Rs 240), valuing the stock at a FY26E price to earning multiple of 25 times (earlier 20 times).This implies enterprise value/Ebitda multiple of 14 times for FY26E. Maintain 'Sell'. Aggressive bidding in railway projects could be a potential downside risk..Click on the attachment to read the full report:.Pune Woman Slips Into 100-Foot Gorge Near Thoseghar Waterfalls While Taking Selfie, Rescued | WATCH.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Railtel Q1 Results Review - Eyeing Big Order Flow From Indian Railway: ICICI Securities

Aggressive bidding in railway projects could be a potential downside risk for the stock, says the brokerage.

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Railtel Q1 Results Review - Eyeing Big Order Flow From Indian Railway: ICICI Securities

Aggressive bidding in railway projects could be a potential downside risk for the stock, says the brokerage.

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