Why is Mahanagar Telephone Nigam Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -14.55% and Operating profit at 0% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
2
The company has declared Negative results for the last 3 consecutive quarters
- NET SALES(Latest six months) At Rs 348.96 cr has Grown at -22.54%
- PAT(Latest six months) At Rs -1,903.35 cr has Grown at -22.54%
- DEBT-EQUITY RATIO(HY) Highest at -1.18 times
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -24.55%, its profits have fallen by -8.5%
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.51% over the previous quarter and collectively hold 13.49% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.55% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is M T N L for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
M T N L
-45.15%
-0.49
49.87%
Sensex
-4.3%
0.43
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.33%
EBIT Growth (5y)
-2.08%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.18
Sales to Capital Employed (avg)
0
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
13.48%
ROCE (avg)
-15.79%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
36
Price to Book Value
-0.05
EV to EBIT
-37.65
EV to EBITDA
-97.80
EV to Capital Employed
6.86
EV to Sales
49.59
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-18.30%
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 2.52 times
-11What is not working for the Company
NET SALES(Latest six months)
At Rs 387.28 cr has Grown at -26.63%
PAT(Latest six months)
At Rs -1,857.15 cr has Grown at -26.63%
DEBT-EQUITY RATIO(HY)
Highest at -1.18 times
Loading Valuation Snapshot...
Here's what is working for M T N L
Debtors Turnover Ratio- Half Yearly
Highest at 2.52 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for M T N L
Net Sales - Latest six months
At Rs 387.28 cr has Grown at -26.63%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs -1,857.15 cr has Grown at -26.63%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at -1.18 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio