⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TTML - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.3
| Stock Code | TTML | Market Cap | 8,792 Cr. | Current Price | 45.1 ₹ | High / Low | 81.2 ₹ |
| Book Value | -101 ₹ | Dividend Yield | 0.00 % | ROCE | 50.3 % | ROE | % |
| Face Value | 10.0 ₹ | DMA 50 | 48.2 ₹ | DMA 200 | 56.7 ₹ | Chg in FII Hold | 0.00 % |
| Chg in DII Hold | 0.01 % | PAT Qtr | -146 Cr. | PAT Prev Qtr | -321 Cr. | RSI | 45.7 |
| MACD | -1.52 | Volume | 30,04,504 | Avg Vol 1Wk | 84,86,568 | Low price | 41.1 ₹ |
| High price | 81.2 ₹ | 52w Index | 10.2 % | Qtr Profit Var | 53.6 % | EPS | -5.64 ₹ |
| Industry PE | 39.9 |
📊 Core Financials
- Revenue Growth: Weak, with persistent losses (PAT negative).
- Profit Margins: Negative margins; EPS at -5.64 ₹.
- Debt Ratios: Debt-to-equity not disclosed, but negative book value (-101 ₹) indicates stressed balance sheet.
- Cash Flows: Likely under strain given recurring losses.
- Return Metrics: ROCE strong at 50.3%, but ROE not reported due to negative equity.
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative earnings.
- P/B Ratio: Not applicable (negative book value).
- PEG Ratio: Not available.
- Intrinsic Value: Difficult to justify premium; current price (45.1 ₹) trades below long-term DMA 200 (56.7 ₹).
🏢 Business Model & Competitive Advantage
- Operates in telecom services, a highly competitive and capital-intensive industry.
- Competitive advantage limited; struggles against larger peers with stronger financials.
- Positive sign: narrowing quarterly losses (PAT improved from -321 Cr. to -146 Cr.).
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near support levels around 41–43 ₹, given volatility and weak fundamentals.
- Long-Term Holding: Risky unless turnaround in profitability and debt restructuring occurs. Suitable only for speculative investors with high risk tolerance.
Positive
- Improvement in quarterly losses (53.6% variance).
- Strong ROCE at 50.3% indicates efficient capital use despite losses.
Limitation
- Negative book value and EPS.
- No dividend yield; shareholder returns dependent solely on capital appreciation.
- High volatility with weak technical indicators (MACD negative, RSI mid-range).
Company Negative News
- Consistent losses impacting balance sheet strength.
- Weak investor confidence reflected in stagnant FII/DII holdings.
Company Positive News
- Quarterly losses reduced significantly, showing signs of operational improvement.
- Volume activity indicates continued investor interest despite challenges.
Industry
- Telecom industry P/E at 39.9, indicating sector trades at premium valuations.
- High competition and capital intensity; consolidation trends favor larger players.
Conclusion
- TTML remains financially stressed with negative equity and losses.
- Short-term speculative opportunities exist near support levels, but long-term holding is risky without a clear turnaround strategy.
- Investors should monitor debt restructuring and profitability improvements before considering significant exposure.
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