TTML - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 2.8
| Stock Code | TTML | Market Cap | 8,787 Cr. | Current Price | 45.0 ₹ | High / Low | 81.2 ₹ |
| Book Value | -101 ₹ | Dividend Yield | 0.00 % | ROCE | 50.3 % | ROE | % |
| Face Value | 10.0 ₹ | DMA 50 | 47.8 ₹ | DMA 200 | 56.3 ₹ | Chg in FII Hold | 0.00 % |
| Chg in DII Hold | 0.01 % | PAT Qtr | -146 Cr. | PAT Prev Qtr | -321 Cr. | RSI | 46.3 |
| MACD | -1.24 | Volume | 19,71,058 | Avg Vol 1Wk | 75,75,548 | Low price | 41.1 ₹ |
| High price | 81.2 ₹ | 52w Index | 9.80 % | Qtr Profit Var | 53.6 % | EPS | -5.64 ₹ |
| Industry PE | 39.0 |
📊 Analysis: TTML shows mixed signals. While ROCE at 50.3% indicates efficient capital usage, the company is loss-making with negative EPS (-5.64 ₹) and negative book value (-101 ₹). PAT remains negative (-146 Cr.), though losses have narrowed compared to the previous quarter (-321 Cr.). Dividend yield is 0%, offering no income support. Technicals show the stock trading below its 200 DMA (56.3 ₹), reflecting medium-term weakness. RSI at 46.3 and negative MACD (-1.24) suggest neutral to weak momentum. The industry P/E is 39, but TTML has no meaningful P/E due to losses.
💡 Entry Zone: For speculative investors, accumulation may be considered near 41–44 ₹, closer to support levels. Conservative long-term investors should avoid fresh entry until profitability stabilizes.
📈 Exit / Holding Strategy: Existing holders may continue only if willing to take high risk, with exit strategy around 55–60 ₹ (near 200 DMA resistance). Holding period should be short-to-medium term unless profitability improves, as long-term compounding prospects remain uncertain.
Positive
- ROCE of 50.3% indicates efficient capital usage despite losses.
- Quarterly losses have narrowed (PAT -146 Cr. vs -321 Cr.).
- Minor increase in DII holdings (+0.01%) shows some institutional interest.
Limitation
- Negative EPS (-5.64 ₹) and negative book value (-101 ₹).
- No dividend yield (0.00%), limiting investor returns.
- Stock trading below 200 DMA (56.3 ₹) indicates weakness.
- High volatility with 52-week range (81.2 ₹ high vs 41.1 ₹ low).
Company Negative News
- Consistent losses with negative PAT and EPS.
- Weak financial structure with no clear profitability outlook.
Company Positive News
- Losses have reduced significantly quarter-on-quarter.
- Stable ROCE suggests operational efficiency despite financial stress.
Industry
- Industry P/E at 39.0 indicates sector is valued at premium levels.
- Telecom and technology services sector remains competitive and capital-intensive.
Conclusion
⚠️ TTML is not a strong candidate for long-term investment due to persistent losses, negative book value, and lack of dividend support. While ROCE is high and losses are narrowing, fundamentals remain weak. Entry should be avoided for conservative investors; speculative investors may consider accumulation near 41–44 ₹ with strict exit discipline around 55–60 ₹. Long-term holding is not recommended until profitability and earnings visibility improve.