TTML - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | TTML | Market Cap | 8,392 Cr. | Current Price | 42.9 ₹ | High / Low | 81.2 ₹ |
| Book Value | -102 ₹ | Dividend Yield | 0.00 % | ROCE | 56.7 % | ROE | % |
| Face Value | 10.0 ₹ | DMA 50 | 41.9 ₹ | DMA 200 | 49.7 ₹ | Chg in FII Hold | -0.04 % |
| Chg in DII Hold | 0.03 % | PAT Qtr | -81.9 Cr. | PAT Prev Qtr | -146 Cr. | RSI | 54.0 |
| MACD | 1.38 | Volume | 28,35,498 | Avg Vol 1Wk | 41,20,129 | Low price | 30.1 ₹ |
| High price | 81.2 ₹ | 52w Index | 25.1 % | Qtr Profit Var | 73.3 % | EPS | -1.10 ₹ |
| Industry PE | 41.0 |
📊 TTML shows strong operational efficiency with ROCE at 56.7%, but its fundamentals remain weak. Negative EPS (-1.10 ₹), negative book value (-102 ₹), and consistent losses undermine valuation metrics. With no dividend yield and distorted P/E, intrinsic value cannot be justified. Cash flow visibility is poor, and debt ratios are undisclosed, adding uncertainty. The business model relies heavily on telecom sector growth, but profitability remains elusive.
💡 Entry Price Zone: Safer accumulation between 35 ₹ – 40 ₹, near 50 DMA support (41.9 ₹). Buying above 45 ₹ carries higher risk.
📈 Long-Term Holding Guidance: TTML is speculative. Long-term holding is only advisable if earnings turn positive and ROE improves. Conservative investors should wait for consistent profitability before entry.
Positive
- High ROCE (56.7%) reflects efficient capital use.
- Quarterly losses narrowed significantly (PAT improved from -146 Cr. to -81.9 Cr.).
- Technical indicators (RSI 54, MACD 1.38) show near-term stability.
Limitation
- Negative EPS (-1.10 ₹) and book value (-102 ₹).
- No dividend yield, limiting investor returns.
- High volatility with wide 52-week range (30.1 ₹ – 81.2 ₹).
- Current volume (28.3 lakh) below weekly average (41.2 lakh), showing weaker participation.
Company Negative News
- Consistent PAT losses despite improvement.
- Decline in FII holdings (-0.04%), showing reduced foreign investor confidence.
Company Positive News
- Quarterly PAT improved significantly compared to previous quarter.
- Slight increase in DII holdings (+0.03%), showing domestic support.
Industry
- Industry PE at 41.0 indicates high valuation benchmarks.
- Telecom sector remains competitive with heavy capex requirements and pricing pressure.
Conclusion
⚠️ TTML is not fundamentally strong for long-term investment. It may suit speculative traders betting on a turnaround, but conservative investors should avoid until profitability stabilizes. Exit opportunities may arise near 55–60 ₹ if momentum sustains, but holding without earnings visibility is risky.
Would you like me to extend this with peer benchmarking overlays (e.g., Bharti Airtel, Vodafone Idea) so you can compare TTML’s fundamentals against sector leaders?