TTML - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 2.6

📡 Tata Teleservices (Maharashtra) Ltd (TTML) shows strong capital efficiency but suffers from persistent losses, negative book value, and weak investor sentiment, making it a speculative play with high risk.

📈 Positive

• 📊 ROCE Strength: ROCE of 50.3% indicates efficient use of capital despite ongoing losses.
• 📉 Technical Support: RSI at 40.1 suggests the stock may be nearing oversold territory.
• 📈 Historical Volatility: Price range from ₹50 to ₹88.9 offers potential for swing trading.
• 📡 Business Model: Operates in telecom and enterprise connectivity, with legacy infrastructure and niche B2B services.

⚠️ Limitation

• 📉 Persistent Losses: PAT of -₹321 Cr. for two consecutive quarters indicates no visible turnaround.
• 📉 Negative Book Value: -₹101 suggests erosion of shareholder equity.
• 📉 No Dividend: Dividend yield of 0.00% offers no passive income.
• 📉 EPS: -₹6.48 reflects continued unprofitability.
• 📉 Weak Volume: Current volume below weekly average, indicating low market interest.

📉 Company Negative News

• Consistent quarterly losses and negative net worth raise concerns over sustainability.
• FII outflows suggest declining foreign investor confidence.

📈 Company Positive News

• ROCE remains strong, indicating operational efficiency despite financial stress.
• Minor improvement in quarterly profit variation (2.9%) could signal early signs of stabilization.

🏭 Industry

• Telecom sector benefits from rising data consumption and enterprise digitization.
• Industry P/E of 54.6 reflects optimism for scalable telecom models, though TTML remains an outlier.
• Peers include Bharti Airtel, Vodafone Idea, and Tata Communications.

🧾 Conclusion

• 📉 Entry Zone: ₹50–₹53 could be a speculative accumulation range based on RSI and support levels.
• 📉 Long-Term View: High-risk hold; suitable only for aggressive investors betting on turnaround or restructuring.
• 🔍 Valuation Watch: Avoid aggressive accumulation until profitability and book value improve.