Mahanagar Telephone Nigam Ltd Stock Analysis

BSE: 500108 | NSE: MTNL | Telecommunication - Service Provider | Small Cap

BSE Share Price 27-Jan-2023 18:01
23.55 -1.20 (-4.85%)

DeciZen - Make an Informed Decision on MTNL

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

MTNL Price Chart

P/E Ratio ( SA) :
0.00
Market Cap :
1,483.7 Cr.
52-wk low :
16.7
52-wk high :
30.8
Bole Toh?

1. Is Mahanagar Telephone Nigam Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Mahanagar Telephone Nigam Ltd is a below average quality company.

2. Is Mahanagar Telephone Nigam Ltd undervalued or overvalued?

The key valuation ratios of Mahanagar Telephone Nigam Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Mahanagar Telephone Nigam Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Mahanagar Telephone Nigam Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of MTNL:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Mahanagar Telephone Nigam Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % -42.4%4.8%-9.7%-8.3%-15.5%-17%-21.3%-24.2%-10.5%-12.7%-
Value Creation Index NA-0.7-1.7NANANANANANANA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,4293,3923,3983,1242,8702,3721,9881,5361,3041,070954
YoY Gr. Rt. %--1.1%0.2%-8.1%-8.1%-17.4%-16.2%-22.7%-15.2%-17.9%-
Adj EPS -84.3-4.7-45-35.9-46.6-47.1-53.8-58.6-39-41.3-42
YoY Gr. Rt. %-NANANANANANANANANA-
BVPS (₹) -44.28032.8-6.3-53.4-100.6-154.5-215.7-254.6-296.1-318.2
Adj Net Profit -5,310-293-2,837-2,260-2,938-2,965-3,388-3,694-2,457-2,600-2,648
Cash Flow from Ops. -374-4,249-1,1571,025-1,050118-738-1,225-230707-
Debt/CF from Ops. -31.5-3.3-14.413.1-14.5143.8-26.7-18.8-110.337.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -12.1%-17.9%-18.7%-17.9%
Adj EPS NANANANA
BVPS 0000
Share Price -0.4% -1.7% 28.4% -14.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 4287.3-26-79.8-270.5156.161.142.231.716.61513.7
Op. Profit Mgn % -85.5-32.7-20.1-26.2-37.9-49.4-66.4-95.74.1-29.6-40.1
Net Profit Mgn % -154.9-8.6-83.5-72.4-102.4-125-170.5-240.5-188.5-243.1-277.5
Debt to Equity -4.22.88-33.9-4.5-2.7-2-1.7-1.6-1.4-
Working Cap Days 1,1051,4261,7891,5021,0961,2451,3251,9012,2182,2262,333
Cash Conv. Cycle 363026303437558755750

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 13.70%

Sales growth has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at -20.75%

Latest Financials - Mahanagar Telephone Nigam Ltd.

Standalone Consolidated
TTM EPS (₹) -42 -42.1
TTM Sales (₹ Cr.) 954 1,031
BVPS (₹.) -318.2 -318.4
Reserves (₹ Cr.) -20,673 -20,690
P/BV -0.07 -0.07
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 16.70 / 30.75
All Time Low / High (₹) 4.49 / 390.00
Market Cap (₹ Cr.) 1,484
Equity (₹ Cr.) 630
Face Value (₹) 10
Industry PE 18.2

Management X-Ray of MTNL :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of MTNL

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Mahanagar Telephone Nigam Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of MTNL on 27-Jan-2023 18:01 is : 23.55.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 27-Jan-2023 18:01 the market cap of MTNL stood at ₹ 1,483.7.
The latest PE ratio of MTNL as of 27-Jan-2023 18:01 is 0.00.
The latest PB ratio of MTNL as of 27-Jan-2023 18:01 is -0.07
The 52-week high of MTNL is ₹ 30.75 and the 52-week low is ₹ 16.70.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of MTNL is ₹ 954.0 ( Cr.) .

About Mahanagar Telephone Nigam Ltd

Mahanagar Telephone Nigam (MTNL) was set up on April1, 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai.

In the past 23 years, the company has taken rapid strides to emerge as India's leading and one of Asia's largest telecom operating companies. Besides having a strong financial base, MTNL has achieved a customer base of 8.06 million as on March 31, 2009.

The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode.

The Government of India currently holds 56.25% stake in the company.

Subsidiary

Millennium Telecom (MTL), incorporated on February 17, 2000, is a wholly owned subsidiary of MTNL that has been formed to do practically any type of telecom business with a focus on value added services. It intends to roll out a router-based packetised telecom network and create facilities like Application Development Centre, Internet Data Centre, STP facilities and payment gateway. Presently, it has a category ‘A’ ISP licence and is in the process of application development and rolling out the services.

Joint ventures

United Telecom Limited (UTL) MTNL has formed a joint venture company in Nepal by the name of United Telecom (UTL) in collaboration with Telecom Consultants India Limited (TCIL), Videsh Sanchar Nigam Limited (VSNL) and NVPL (Nepal Ventures Private Limited, a Nepalese Company). The company is operational since October 10, 2001 for providing WLL based basic services in Nepal. In Nepal against the switching capacity of 50K, 21K telephone connections are working.  

Mahanagar Telephone Mauritius Limited (MTML) MTNL has set up its 100% subsidiary -- Mahanagar Telephone Mauritius Limited (MTML) in Mauritius, for providing basic, mobile and international long distance services as 2nd operator in Mauritius. Necessary licenses have been obtained in January 2004. MTML has already started its ILD and CDMA based basic services in Mauritius. In Mauritius against the switching capacity of 50K, 8K telephone connections are working.   

MTNL-STPI IT Services Limited MTNL-STPI IT Services Ltd. is a 50:50 Joint Venture between Software Technology Parks of India (STPI) and Mahanagar Telephone Nigam Limited, (MTNL). The JV formed in 2006 combines the STPI.s rich experience as an ISP and MTNL’s track record of being India’s leading telecom operating company to offer niche portal services to the Indian community. The JV was formed to realize one of the 10-point agenda of MoC&IT, which are of extreme importance to India for bringing about an all round economic development. The JV aims to provide exclusive data center services, messaging services, business application services to the identified sectors of economic activity and thereby also popularizing the .in domain in the networked community across the world.    

Millenium Telecom Limited (MTL) MTNL has restructured Millenium Telecom Limited (MTL) as a joint venture company of MTNL and BSNL with 50% and 50% equity participation respectively. The company will now be entering into new business stream of international long distance operations and will be executing a project of submarine cable system, both east and west from India.

Milestones

  • 1911- Delhi telephones system with manual exchange was established.
  • 1926 - Lothian exchange, the first automatic exchange was inaugurated.
  • 1937 - Connaught Place exchange was opened.
  • 1945 - First Manual Trunk exchange was opened.
  • 1950 - Cantt exchange was opened.
  • 1953 - Tiz Hazari Exchange was commissioned whereas Lothian exchange ceased working.
  • 1955 - Secretariat exchange was commissioned
  • 1958 - Karol Bagh exchange (SXS) was commissioned.
  • 1961 - Jor Bagh exchange (SXS) was commissioned.
  • 1961- Shahadara exchange (SXS) was commissioned.
  • 1962- First STC service was opened at Agra.
  • 1963 - Delhi Gate (27) exchange was commissioned.
  • 1964 - Delhi telephone crosses 50,000 lines. 
  • 1966 - Exchanges at Nangloi, Narela, Najafgarh, Bahadurgarh and Ballabgarh were opened.
  • 1967 - Rajpath (38) exchange was commissioned.
  • 1968 - 1st X-Bar exchange (KB58) was commissioned. X-Bar exchange (JB62) was commissioned.
  • 1969 - Trunk automatic exchange (TAX) was commissioned.
  • 1970 - Okhla X-Bar exchange was commissioned.
  • 1972 - Idgah-I (51) Strowger exchange was opened.
  • 1972 - X-Bar (31) Janpath-I exchange was commissioned. Delhi telephones crosses 1 lakh lines.
  • 1973 - X-Bar (67) Chanakya Puri exchange was opened.
  • 1975 - X-Bar Janpath-IV (34) exchange and X-Bar Shahdara East (20) exchange was commissioned.
  • 1976 - Shakti Nagar (74) exchange, X-Bar exchange, Shahdara East (20) Extension-I, X-Bar exchange and Hauz Khas (65) X-Bar exchange were commissioned.
  • 1977 - STD Service to Indore and Ambala were started
  • 1978 - Rajouri Garden-I (59) X-Bar exchange, Hauz Khas -II (66) X-Bar exchange, Janpath-V (35) X-Bar exchange and Nehru Place (68) Strowger exchange were inaugurated.
  • 1986 - Mahanagar Telephones Nigam Limited was incorporated.
  • 1986 - First digital exchange world technology brought to India
  • 1987 - Introduction of large scale push button telephone made dialling easier.
  • 1988 - Phone Plus services multiplied benefits to telephone users.
  • 1992 - Voice Mail Service was introduced.
  • 1996 - ISDN services were introduced.
  • 1997 - Wireless in Local loop was introduced
  • 1999 -Internet services were introduced.
  • 2000 - Millennium Telecom Limited, a wholly owned subsidiary of MTNL was born.
  • 2001 - The company launched GSM Cellular Mobile service under the brand name Dolphin. WLL Mobile services under the brand name Garuda was also launched. The company got  listed at New York stock exchange (NYSE). United telecom, MTNL entered into joint venture in Nepal, for providing WLL based services in Nepal became operational. CLI based Internet express services was introduced.
  • 2002 - The company launched pre-paid GSM Mobile services under the brand name Trump. Email on PSTN lines were introduced under the brand name mtnlmail.
  • 2003 - CDMA 1x 2000 Technology under the brand name Garuda 1-x was introduced. A pilot project of ADSL based Broadband and Virtual Phone services were introduced. Mahanagar Telephone Mauritius bagged second operator license in Mauritius.
  • 2004 - The company expanded GSM & CDMA capacity by 800,000 lines each (total 1.6 million lines expanded) STD/ISD rates slashed by almost 60%. MTNL's subsidiary MTML obtained license to provide fixed, mobile and ILD services in Mauritius. Wi-Fi and digital certification services were launched. State of the art training centre ‘CETTM’ was commissioned.
  • 2005 - The company launched broadband services under the brand name ‘TRI BAND’. It also floated tender for 1 million 3G GSM lines.
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