Why is Mahanagar Telephone Nigam Ltd ?
1
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 -16.27% and Operating profit at 0% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
2
Flat results in Dec 24
- NET SALES(Q) At Rs 170.07 cr has Fallen at -10.4% (vs previous 4Q average)
- PBDIT(Q) Lowest at Rs -128.08 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at -75.31%
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated 1.69% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
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 11.19%, its profits have fallen by -1.6%
5
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
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 Telecommunication - Service Provider)
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, High Return
Absolute
Risk Adjusted
Volatility
M T N L
11.22%
0.17
66.87%
SENSEX
0.45%
0.02
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-16.27%
EBIT Growth (5y)
9.89%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
13.59%
ROCE (avg)
-18.03%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
52
Price to Book Value
-0.10
EV to EBIT
-31.88
EV to EBITDA
-77.90
EV to Capital Employed
5.77
EV to Sales
45.78
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-18.34%
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-5What is not working for the Company
NET SALES(Q)
At Rs 170.07 cr has Fallen at -10.4% (vs previous 4Q average
PBDIT(Q)
Lowest at Rs -128.08 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at -75.31%
Loading Valuation Snapshot...
Here's what is not working for M T N L
Net Sales - Quarterly
At Rs 170.07 cr has Fallen at -10.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 189.84 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 170.07 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs -128.08 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at -75.31%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales