This Navratna PSU stock that deals in telecommunication services for its customers, with tariffs being affordable, hit a 20 percent upper circuit after reports that the Government is likely to auction the Telecom company’s assets.
Share Price Movement
With a market capitalization of Rs. 3,556.35 Crores, the shares of Mahanagar Telephone Nigam Limited were up by 20 percent in the day’s trade touching a day’s high of Rs. 57.16 per share. The stock reiterated from the day’s high and was trading at Rs. 56.67 which is 18.95 percent higher than the previous closing price of Rs. 47.64 apiece.
It has delivered a return of 14 percent which has outperformed the Nifty Index in the past year.
What Happened?
The shares of MTNL rose after reports that the Government of India is likely to issue a tender on the auction of Land Assets related to its Miniratna Category Bharat Sanchar Nigam Limited (BSNL). This likely tender is expected to be issued by mid-February. This might be a part of asset monetization for the financial year 2026.
As per sources, the Department of Divestment and Public Asset Management (DIPAM) secretary Arunish Chawla said “We are going to help MTNL and BSNL in monetizing whatever assets they have so that the value that is locked in can be redeployed, liabilities are cleared and we can re-energize the sector”.
Q2YF25 Financial Highlights
Mahanagar Telephone Nigam’s consolidated revenue from operations has declined by 12.12 percent year on year from Rs. 198 crore in Q2FY24 to Rs. 174 crore in Q2FY25 and declined by 5.43 percent quarter on quarter from Rs. 184 crore in Q1FY25.
The company’s consolidated net loss has increased by 12.23 percent year on year from a loss of Rs. 793 crores in Q2FY24 to a loss of Rs. 890 crores in Q2FY25. As compared to Q1FY25, the company’s net loss has increased by 15.13 percent quarter on quarter from a loss of Rs. 773 crore.
Business Segments
They recognize their revenue from operations under Basic and other services which contributed around 87.79 percent and the remaining 12.20 percent from the Cellular segment as of September 2024. In the operating loss, Cellular contributes to higher losses. Overall, the finance cost dragged down and led to an increase in losses.
Company Overview
Mahanagar Telephone Nigam Limited (MTNL) is a government-owned telecom provider in India serving regions like Mumbai and Delhi providing services through its products such as landline, broadband, and mobile since 1986.
Written By Santhosh S
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