Mahanagar Telephone Nigam Ltd (MTNL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tata Comm

Railtel Corpn.

Sar Televenture

Route Mobile

Tata Tele. Mah.

M T N L

Reliance Communi

GTL

Bharti Airtel PP

Megasoft

STL Networks

Why is Mahanagar Telephone Nigam Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -14.55% and Operating profit at 0% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(9M) At Rs 518.83 cr has Grown at -21.33%
DEBT-EQUITY RATIO(HY) Highest at -1.18 times
DPS(Y) Lowest at Rs 0.00

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -26.08%, its profits have fallen by -8.5%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.51% over the previous quarter and collectively hold 13.49% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.03% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -26.08% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is M T N L for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

M T N L

-26.73%

-0.52

49.87%

Sensex

4.67%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.55%

EBIT Growth (5y)

5.15%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.18

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

13.49%

ROCE (avg)

-16.14%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.08

EV to EBIT

-34.96

EV to EBITDA

-80.58

EV to Capital Employed

7.01

EV to Sales

52.71

PEG Ratio

Dividend Yield

ROCE (Latest)

-20.06%

ROE (Latest)

Negative BV

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CF(Y)

Highest at Rs 322.17 Cr

DPR(Y)

Highest at 0.00%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.23 times

-14What is not working for the Company

NET SALES(9M)

At Rs 518.83 cr has Grown at -21.33%

DEBT-EQUITY RATIO(HY)

Highest at -1.18 times

DPS(Y)

Lowest at Rs 0.00

PAT(Q)

At Rs -960.20 cr has Fallen at -9.8% (vs previous 4Q average

EPS(Q)

Lowest at Rs -15.24

Loading Valuation Snapshot...

Here's what is working for M T N L

Operating Cash Flow - Annually

Highest at Rs 322.17 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 2.23 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Highest at 0.00%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for M T N L

Net Sales - Latest six months

At Rs 348.96 cr has Grown at -22.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at -1.18 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Profit After Tax (PAT) - Quarterly

At Rs -960.20 cr has Fallen at -9.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -874.35 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -15.24

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Dividend per Share (DPS) - Annually

Lowest at Rs 0.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)