Recent Price Movement and Market Context
MTNL’s share price has been on a downward trajectory for the past three consecutive sessions, losing approximately 4.6% over this period. Today’s decline of 2.64% further extended the stock’s underperformance relative to the Telecom - Services sector, which it lagged by 1.76%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market benchmark, the Sensex, experienced a negative session, closing down 232.10 points or 0.33% at 82,975.28. Despite this, the Sensex remains within 3.84% of its 52-week high of 86,159.02, although it has recorded a three-week consecutive decline, losing 3.25% in that timeframe. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a longer-term positive trend despite recent weakness.
Financial Performance and Fundamental Assessment
MTNL’s financial indicators continue to reflect challenges. The company’s market capitalisation grade stands at 3, consistent with its overall Mojo Score of 3.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 23 July 2025. This grading reflects concerns over the company’s weak long-term fundamentals and deteriorating financial health.
Over the last five years, MTNL’s net sales have declined at an annualised rate of 14.55%, while operating profit has remained stagnant, showing no growth. The company’s debt profile is also a concern, with an average debt-to-equity ratio of zero historically but a recent half-year figure indicating a negative 1.18 times, highlighting an unusual capital structure situation. The company has reported negative results for the last three consecutive quarters, with net sales for the nine-month period at Rs.518.83 crore, down 21.33% year-on-year.
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Valuation and Risk Profile
The stock’s valuation metrics indicate elevated risk. MTNL is trading below its historical average valuations, reflecting investor caution. Over the past year, the stock has delivered a negative return of 37.85%, significantly underperforming the Sensex, which gained 7.64% over the same period. Profitability has also declined, with profits falling by 8.5% year-on-year.
MTNL’s negative book value further underscores its weak long-term fundamental strength. The company’s dividend per share (DPS) is currently at Rs.0.00, the lowest in recent years, signalling limited returns to shareholders. Despite its size, domestic mutual funds hold no stake in MTNL, which may reflect a lack of confidence in the company’s prospects or valuation at current levels.
Comparative Performance and Sector Positioning
MTNL’s performance has been below par not only in the near term but also over longer periods. The stock has underperformed the BSE500 index over the last three years, one year, and three months. Its 52-week high price was Rs.58, nearly 81% above the current level, highlighting the extent of the decline.
The Telecom - Services sector itself has faced headwinds, but MTNL’s relative underperformance is notable. The company’s high debt levels and negative EBITDA contribute to its classification as a Strong Sell by MarketsMOJO, reflecting the challenges it faces in regaining investor confidence.
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Summary of Key Metrics
To summarise, MTNL’s stock price has reached Rs.32.04, its lowest level in 52 weeks, amid a backdrop of declining sales, negative earnings, and a challenging capital structure. The company’s Mojo Grade of Strong Sell, updated in July 2025, reflects these ongoing concerns. The stock’s underperformance relative to the Sensex and its sector, combined with negative returns and a lack of institutional backing, paints a cautious picture of its current standing in the market.
While the broader market shows some resilience, MTNL’s financial and valuation indicators suggest that the stock remains under pressure. Investors and market participants will continue to monitor the company’s quarterly results and financial disclosures for further clarity on its trajectory.
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