TTML - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 2.4

📊 Core Financials Overview

Profitability

ROCE: 50.3% is unusually high, but likely distorted due to negative equity and accounting adjustments.

EPS: −6.53 ₹ and consistent quarterly losses (−₹321 Cr vs −₹306 Cr) reflect ongoing financial stress.

ROE is undefined, and Book Value is negative (−₹100), indicating accumulated losses and erosion of shareholder equity.

Balance Sheet Health

Debt-to-equity ratio is unavailable, but the negative book value suggests high leverage or accumulated deficits.

Dividend Yield: 0.00% — no payouts, consistent with a turnaround or restructuring phase.

FII holding increased (+0.28%), signaling speculative interest, while DII holding remained flat.

Cash Flow & Stability

PEG ratio is not meaningful due to negative earnings.

RSI at 47.4 and MACD negative suggest weak technical momentum.

Volume is declining, indicating reduced trading interest.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio Not applicable Due to negative earnings

P/B Ratio Not meaningful Negative book value

PEG Ratio Not applicable Due to lack of earnings growth

Intrinsic Value ~₹30–₹35 Estimated well below current price

TTML appears significantly overvalued, especially given its persistent losses and negative net worth.

📡 Business Model & Competitive Edge

Sector: Tata Teleservices (Maharashtra) Ltd operates in enterprise telecom services, offering cloud, cybersecurity, and connectivity solutions.

Strengths

Backed by Tata Group, which lends credibility and potential strategic support

Focused on B2B digital transformation services for SMEs and corporates

Challenges

Persistent losses and negative equity

No clear path to profitability or cash flow generation

High valuation despite weak fundamentals

According to TopStockResearch’s analysis, TTML has not generated sufficient free cash flow to support its operations, and its solvency score remains low.

📌 Entry Zone Recommendation

Suggested Entry Range: ₹30–₹35

Well below current price and closer to estimated intrinsic value

RSI suggests waiting for further correction before entry

🧭 Long-Term Holding Guidance

Avoid Fresh Entry at Current Levels: Valuation is not supported by fundamentals.

Hold Only if Strategic: Suitable for high-risk investors betting on a turnaround or acquisition.

Watchlist Triggers

Reduction in quarterly losses

Strategic partnerships or capital infusion

Institutional accumulation and volume breakout

TTML is a speculative turnaround story with deep financial challenges. If you're tracking it for long-term potential, keep a close eye on earnings recovery and strategic moves. You can also explore Dhan’s valuation dashboard for more insights.

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