Geojit IPO report on Railtel corporation of india
RailTel Corporation of India Ltd. (RCIL) is an information and communications technology (ICT) infrastructure provider and one of the largest neutral telecom infrastructure providers in India. A neutral telecom infra provider is a third party who has little or no part in providing Internet service to the end-user but allows interconnection between multiple telecommunication carriers (like Airtel, Reliance Jio). Incorporated in 2000, it is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways. RailTel undertakes various ICT projects for the Indian Railways, central government and state governments.
Valuation and Outlook
At the upper price band of Rs.94, RailTel is available at a P/E of 21.4x on FY20 basis, which appears fully priced. Considering, increasing data usage, GoI’s digital India initiatives and further diversification plans of RailTel, we assign a Subscribe rating for the issue.
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