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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tata Comm

Sigma Advanced S

Route Mobile

Railtel Corpn.

Sar Televenture

Tata Tele. Mah.

M T N L

STL Networks

GTL

Reliance Communi

Bharti Airtel PP

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 -7.69% and Operating profit at 0% over the last 5 years
The company has a negative book value of Rs 29,959.74 crore

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -167.98 cr
Over the past year, while the stock has generated a return of -40.25%, its profits have risen by 6.6%
The stock is trading risky as compared to its average historical valuations

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -0.51% in the last 1 year, its fall in the stock was much higher with a return of -40.25%

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

-40.25%

-0.88

45.70%

Sensex

-5.98%

-0.45

13.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.69%

EBIT Growth (5y)

2.31%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.16

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

13.94%

ROCE (avg)

-15.00%

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

-0.06

EV to EBIT

-49.70

EV to EBITDA

-217.92

EV to Capital Employed

7.77

EV to Sales

39.36

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.64%

ROE (Latest)

Negative BV

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

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

11What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 0.08 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 775.89 cr

NET SALES(Q)

Highest at Rs 370.51 cr

PBDIT(Q)

Highest at Rs 60.10 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 16.22%

PBT LESS OI(Q)

Highest at Rs -817.95 cr.

PAT(Q)

Highest at Rs -306.95 cr.

EPS(Q)

Highest at Rs -4.87

-2What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at -1.18 times

Loading Valuation Snapshot...

Here's what is working for M T N L

Net Sales - Quarterly

At Rs 370.51 cr has Grown at 77.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 208.75 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 0.08 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 370.51 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 60.10 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 16.22%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs -817.95 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs -306.95 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs -4.87

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 775.89 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Debt-Equity Ratio - Half Yearly

Highest at -1.18 times

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

Non Operating Income - Quarterly

Highest at Rs 511.13 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income