This Government-owned stock specializes in providing telecom services in metro cities like Delhi and Mumbai and international markets such as Mauritius and Nepal. Offers fixed-line, mobile, broadband, and enterprise solutions. The recent asset monetization announcement has boosted investor confidence, leading to a surge in its stock price
Share Price Movement
On Thursday, Mahanagar Telephone Nigam Ltd. (MTNL), with a market capitalization of Rs 3,079 crore, saw its stock price surge nearly 18% from the previous day’s close of Rs 43.24, reaching an intraday high of Rs 51.18. However, the stock later retreated and is currently trading at Rs 48.71 per share.
Reasons behind why the stock rallied
State-owned telecom firms BSNL and MTNL have raised Rs 12,984.86 crore through asset monetisation since 2019, as informed in Parliament Minister of State for Communications Pemmasani Chandra Sekhar shared BSNL earned Rs 2,387.82 crore and MTNL Rs 2,134.61 crore from selling land and buildings, while BSNL also gained Rs 8,204.18 crore and MTNL Rs 258.25 crore from monetising towers and fiber. The companies are only selling non-essential assets that are not required for their operations.
Following the announcement, MTNL shares surged 18 percent as investors reacted positively to the fund inflow. The monetization is expected to strengthen MTNL’s financial position, improve liquidity, and aid in its revival efforts.
Key Financial Highlights
The company reported operating revenue of Rs 528 crores for the first 9M FY25 against Rs 589 crores in 9M FY24, while operating losses improved to Rs 358 crores in the first 9M FY25 against operating losses of Rs 413 crores in 9M FY24. The decline in revenue reflects the company’s ongoing financial struggles, driven by intense competition and high debt levels. The stock has given an outstanding return of 48 percent in the last 1-year.
About the Company:
Established by the government in April 1986, Mahanagar Telephone Nigam Ltd. (MTNL) was formed to enhance telecom services, expand network coverage, and introduce new offerings in Delhi and Mumbai. The company is also testing its 5G network, signaling its commitment to staying at the forefront of technological advancements
The company boasts a significant network infrastructure capacity with an extensive network of transmission cables, towers, and optical fibers across the two circles. As of September 30, 2024, MTNL had 1.9 million mobile subscribers and 2.07 million fixed-line connections.
Written by Shashi Kumar
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