IOC vs Vedanta vs RailTel: Which dividend stock to buy after Q4 results 2025?

Mint

03-05-2025

IOC vs Vedanta vs RailTel: After the announcement of Q4 results 2025, stock market investors are scanning the listed companies' balance sheets to find value picks for their portfolio. However, savvy investors do not just look at the potential for stock appreciation; they also look at the corporate history of the company and their record of rewarding their shareholders. For such investors, looking at dividend stocks can be a good option as interim or final dividends get credited into the bank account of eligible shareholders without any change in shareholding. As the Indian Oil Corporation Ltd (IOCL), Vedanta, and RailTel Corporation of India have a good dividend-paying history and their Q4 results are also in the public domain, some investors may look at these dividend stocks to buy when the NSE and BSE resume trade activity on Monday.
Advising investors to look at fundamentally strong dividend stocks instead of just a stock with strong fundamentals, Gaurav Goel, Founder & Director at Fynocrat Technologies, said, "When investing in stocks, the core objective should go beyond merely earning dividends to include capital appreciation over the medium to long term. This approach supports long-term wealth creation while benefiting from regular dividend income."
Comparing these three dividend stocks' Q4 results in 2025, Gaurav Goel said, "All three companies, Railtel, Vedanta, and IOCL, have posted good Q4 results. RailTel reported a 46.33% year-on-year increase in standalone net profit, reaching ₹ 113.4 crore in Q4 FY25, up from ₹ 73.53 crore in Q4 FY24. Indian Oil Corporation reported a 58% jump in consolidated net profit at ₹ 8,123.64 crore for Q4 FY25, compared to ₹ 5,148.87 crore reported during the same period last year. Mining giant Vedanta posted a 154% YoY jump in consolidated net profit to ₹ 3,483 crore for the fourth quarter, while revenue from operations rose 14% YoY to ₹ 40,455 crore."
"Among the three stocks, RailTel appears well-positioned for potential price appreciation over the medium to long term, considering its recent quarterly performance and current market valuation. The stock is currently trading at approximately 50% below its 52-week high, which provides a good margin of safety amid market volatility," said Goel, adding, "In addition to RailTel, Vedanta also stands out from both a capital appreciation and dividend perspective. The company has a consistent track record of generous dividend payouts, with a current dividend yield exceeding 10%. Fundamentally, both RailTel and Vedanta demonstrate strong financials."
Comparing the technical chart pattern of three dividend stocks, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, "From a technical standpoint, Vedanta currently appears more attractive compared to RailTel and IOC shares. Vedanta shares have formed a bullish "Three White Soldiers" pattern on the daily chart, indicating continued upward momentum. Additionally, the stock has made a Bollinger Band breakout, suggesting increased volatility and a potential trend continuation. The stock is targeting the ₹ 450 to ₹ 460 range in the short term. With a current price near ₹ 415, Vedanta share offers a favourable risk-reward ratio, especially when paired with a stop loss at ₹ 375."
The Anand Rathi expert said that RailTel share price has remained range-bound between ₹ 280 and ₹ 330 since March. The stock is consolidating, and a breakout on either side will likely determine its future trend. Until such a move occurs, RailTel lacks a strong technical signal for entry.
"IOC share price has already achieved its recent upward target of ₹ 140. While it's a solid dividend-paying stock, it shows limited immediate upside potential from a technical perspective," Dongre said.
According to the information on the BSE website, Vedanta shares traded ex-dividend on four different occasions in 2024, paying ₹ 43.50 per share dividend ( ₹ 11 + ₹ 4 + ₹ 20 + ₹ 8.50). IOC share price traded ex-dividend once in 2024, paying ₹ 7 per share final dividend to its eligible shareholders. Likewise, RailTel's share price was traded ex-dividend twice in 2024, paying ₹ 2.85 per share dividend ( ₹ 1.85 + Re 1) to its eligible shareholders.
In Q4 results 2025, the RailTel and Vedanta boards didn't announce any dividend for shareholders, but the IOC board declared a ₹ 3 per share final dividend for the financial year 2024-25.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
First Published: 3 May 2025, 11:20 AM IST