TTML - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.3
| Stock Code | TTML | Market Cap | 8,238 Cr. | Current Price | 42.2 ₹ | High / Low | 81.2 ₹ |
| Book Value | -102 ₹ | Dividend Yield | 0.00 % | ROCE | 55.6 % | ROE | % |
| Face Value | 10.0 ₹ | DMA 50 | 42.2 ₹ | DMA 200 | 48.7 ₹ | Chg in FII Hold | -0.04 % |
| Chg in DII Hold | 0.03 % | PAT Qtr | -81.9 Cr. | PAT Prev Qtr | -146 Cr. | RSI | 49.5 |
| MACD | 0.08 | Volume | 16,98,938 | Avg Vol 1Wk | 17,87,478 | Low price | 30.1 ₹ |
| High price | 81.2 ₹ | 52w Index | 23.6 % | Qtr Profit Var | 73.3 % | EPS | -1.10 ₹ |
| Industry PE | 44.1 |
📊 Core Financials
Revenue Growth: Declining trend, with weak topline momentum.
Profit Margins: Operating margin strong (~53%), but net losses continue (PAT Qtr: -₹81.9 Cr).
Debt Ratios: Debt-to-equity not disclosed, but negative book value (-₹102) indicates heavy liabilities.
Cash Flows: Positive operating cash flow, but financing outflows remain high.
Return Metrics: ROCE 55.6% (inflated due to accounting), ROE negative (loss-making).
💹 Valuation Indicators
P/E Ratio: Not applicable (EPS -₹1.10).
P/B Ratio: Invalid due to negative book value.
PEG Ratio: Not meaningful (negative earnings).
Intrinsic Value: Difficult to justify above ₹35 given losses.
Industry PE: 44.1, TTML trades far below peers due to weak fundamentals.
🏢 Business Model & Competitive Advantage
Focused on enterprise telecom services (cloud, IoT, cybersecurity).
Backed by Tata Group credibility, aiding trust.
Weak retail presence compared to Airtel and Jio.
📈 Entry Zone & Long-Term Guidance
Entry Zone: ₹30–35 (deep value support).
Long-Term Holding: Only for speculative investors; turnaround depends on debt restructuring and profitability.
✅ Positive
Strong operating margins (~53%).
Tata Group backing ensures credibility.
Quarterly losses reduced significantly (PAT improved from -₹146 Cr to -₹81.9 Cr).
⚠️ Limitation
Negative net worth and high debt burden.
No dividend yield.
Weak competitive positioning in retail telecom.
🚨 Company Negative News
Persistent losses and negative reserves.
FII holding decreased (-0.04%).
High interest costs eroding profitability.
🌟 Company Positive News
Quarterly loss reduction (73% improvement).
DII holding increased (+0.03%).
Focus on enterprise digital solutions (cloud, IoT).
🏭 Industry
Telecom industry dominated by Jio & Airtel.
Industry PE ~44, TTML trades at discount due to losses.
Growth drivers: data demand, enterprise solutions, digital transformation.
📌 Conclusion
TTML is a high-risk, speculative stock. Strong operating margins and Tata Group support are positives, but negative net worth, debt burden, and persistent losses make it unsuitable for conservative investors. Entry only at ₹30–35 for speculative positions; long-term holding depends on successful restructuring and sustained profitability.
Would you like me to prepare a side-by-side comparison of TTML vs Airtel vs Jio to highlight strengths and weaknesses more clearly?