Dividend of Rs 1 On The Track: Navratna PSU Unveils Record Date; Is RAILTEL A Buy On Dips Or A Trap?

With a Pan-India optical fibre network, Railtel Corporation of India, a "Navratna" PSU, is one of the largest providers of neutral telecom infrastructure in the nation. In addition to offering a wide range of passenger services, such as Wi-Fi at India's main train stations and content-on-demand services, RailTel is in the leading edge of providing a countrywide broadband telecom and multimedia network throughout the nation. After the Board announced the record date for a Rs 1 dividend, Railtel Corporation of India's shares closed Thursday's trading session on the NSE 2.33% down at Rs 282.70 per share, with a market capitalization of Rs 9.07KCr.

Railtel Dividend

"Pursuant to Regulation 30 and 42 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Board of Directors have declared 2nd Interim dividend at the rate of 10% of paid-up share capital (Rs.1/- per share). Further, the Board of Directors has also approved Wednesday, 02nd April 2025 as "Record Date" for the purpose of payment of 2nd interim dividend of FY 2024-25. The date of payment/ dispatch of dividend warrant shall be 9th April 2025," said Railtel in a stock exchange filing.

Railtel Corporation of India News

Northern Railway issued RailTel Corporation of India Ltd a work order for indoor and outdoor double distance signalling work of Rs. 28,29,14,088 (including tax) on March 7. The deadline for completing the contract is 06-SEP-26.

On the same day, East Central Railway sent RailTel Corporation of India Ltd a work order for Rs. 47,50,05,370 (including tax) to design, manufacture, supply, install, test, and commission the Distributed EI Electronic Interlocking System in the Dhanbad Division. The deadline for completing the order is 06-MAR-26.

Railtel Corporation of India Financials

In comparison to Rs 62.1 crore during the same time previous year, the company's net profit climbed 4.7% year on year (YoY) to Rs 65 crore. Its net revenue increased from Rs 668.4 crore in Q3 FY24 to Rs 767.6 crore in Q3 FY25, a 14.8% YoY growth. The company's EBITDA decreased 6.6% year on year to Rs 121 crore from Rs 129.7 crore in the same quarter last year. As a result, the EBITDA margin decreased from 19.4% in Q3 FY24 to 15.8% in the third quarter of the current fiscal.

Railtel Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "RAILTEL India is currently trading at ₹285 and remains under selling pressure, forming lower lows and lower highs, indicating a sustained bearish trend. The stock has declined by 54% from its all-time high and has breached the critical ₹300 support level. It is now trading below the 20-day, 50-day, and 200-day EMAs, reinforcing a negative outlook. Additionally, the stock has recently formed a bearish candlestick pattern, and a breakdown from the recent swing low could accelerate the downward trend. The Relative Strength Index (RSI) stands at 35.30 and continues to decline, signaling increasing selling momentum."

"Looking ahead, the ₹265-₹255 range is expected to act as a strong support zone, as these levels have historically attracted buying interest. If the stock stabilizes within this range, a potential rebound could be triggered. However, a breakdown below ₹279 may expose the stock to further selling pressure. Given the prevailing market conditions, traders and investors should exercise caution and wait for confirmation of price action before considering fresh positions," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.