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RailTel of IndiaNSE:RAILTEL -0.97%94 Return-on-Tangible-Equity is 11.90% as of Dec. 2025, which is 2% above its 10-year median of 11.68. GuruFocus rates NSE:RAILTEL with a GF Score™ of 94/100 and a GF Value™ of ₹499.55 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 327 Telecommunication Services companies, RailTel of India ranks better than 51.99% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. RailTel of India's annualized net income for the quarter that ended in Dec. 2025 was ₹2,496 Mil. RailTel of India's average shareholder tangible equity for the quarter that ended in Dec. 2025 was ₹20,975 Mil. Therefore, RailTel of India's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 11.90%.
The historical rank and industry rank for RailTel of India's Return-on-Tangible-Equity or its related term are showing as below:
NSE:RAILTEL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.8 Med: 11.68 Max: 15.99
Current: 15.99
During the past 11 years, RailTel of India's highest Return-on-Tangible-Equity was 15.99%. The lowest was 8.80%. And the median was 11.68%.
NSE:RAILTEL's Return-on-Tangible-Equity is ranked better than 51.99% of 327
companies
in the Telecommunication Services industry
Industry Median: 14.05
vs NSE:RAILTEL: 15.99
RailTel of India (NSE:RAILTEL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
RailTel of India Return-on-Tangible-Equity Related Terms
RailTel of India Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for RailTel of India's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:RAILTEL vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, RailTel of India's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RailTel of India Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, RailTel of India's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where RailTel of India's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.90% mean?
RailTel of India (NSE:RAILTEL) has a Return-on-Tangible-Equity of 11.90% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RailTel of India and its competitors. This is near median its historical median of 11.68. Over the past decade, RailTel of India's Return-on-Tangible-Equity has ranged from 8.80 to 15.99. According to the industry distribution chart, RailTel of India ranks #157 out of 327 companies in the Telecommunication Services industry, placing it in the top 48%.
Is RailTel of India's Return-on-Tangible-Equity too high?
RailTel of India's current Return-on-Tangible-Equity of 11.90% is near median its 10-year median of 11.68. Over the past 10 years, this metric has ranged from a low of 8.80 to a high of 15.99. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.05. RailTel of India's value of 11.90% is 15.3% below this industry median. Based on the distribution chart, RailTel of India ranks #157 out of 327 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, RailTel of India has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RailTel of India's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, RailTel of India ranks #157 out of 327 companies for Return-on-Tangible-Equity. This puts RailTel of India in the upper half of its industry. The industry median Return-on-Tangible-Equity is 14.05. RailTel of India's value of 11.90% is 15.3% below this benchmark. Historically, RailTel of India's own Return-on-Tangible-Equity has ranged from 8.80 to 15.99 over the past decade. While the company's 10-year median is 11.68 vs. the industry median of 14.05, RailTel of India has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.05, based on 327 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RailTel of India's current Return-on-Tangible-Equity of 11.90% is 15.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RailTel of India and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RailTel of India's current Return-on-Tangible-Equity is 11.90%, which is near median its own 10-year median of 11.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RailTel of India stock overvalued right now?
Based on GuruFocus' analysis, RailTel of India (NSE:RAILTEL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹499.55, compared to a current price of ₹284.75 — trading 43% below its estimated fair value. The current Return-on-Tangible-Equity is 11.90%, which is near median its 10-year median of 11.68 and 15.3% below the Telecommunication Services industry median of 14.05. RailTel of India's overall GF Score™ is 94/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For RailTel of India (NSE:RAILTEL), the current Return-on-Tangible-Equity is 11.90% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RailTel of India (NSE:RAILTEL) Overvalued in 2026?
Based on GuruFocus' analysis, RailTel of India stock appears to be undervalued.
The current stock price of ₹284.75 is trading 43% below its estimated GF Value™ of ₹499.55.
GuruFocus considers RailTel of India to be Significantly Undervalued.
Key valuation signals for NSE:RAILTEL:
Return-on-Tangible-Equity: 11.90% (near median its 10-year median of 11.68)
GF Value™: ₹499.55 vs. price of ₹284.75 (43% below fair value)
Industry Position: 15.3% below the Telecommunication Services median (#157 of 327)
No single metric tells the full story. See the NSE:RAILTEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RailTel Corporation of India Ltd is a neutral telecom infrastructure provider in the country. It owns a pan-India optic fiber network on an exclusive Right of Way along the Railway track. The company's operating segment includes Telecom Services and Project Work services. It generates maximum revenue from the Telecom Services segment. The telecom services segment of the company provides services such as Managed Data Services; Leased Lines; Virtual Private Networks; Internet Leased Lines; Data Centre; Tower collocation, Rack and space, and NLD for voice carriage, and the project work services involve the following projects; National Optical Fiber Networks, Telecom and IT services related projects, and Enterprise specific IT & ITES Projects.
94GF Score
Get the complete analysis for NSE:RAILTEL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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