tiprankstipranks
Trending News
More News >
Mahanagar Telephone Nigam Limited (IN:MTNL)
:MTNL
India Market
Advertisement

Mahanagar Telephone Nigam Limited (MTNL) AI Stock Analysis

Compare
2 Followers

Top Page

IN:MTNL

Mahanagar Telephone Nigam Limited

(MTNL)

Rating:39Underperform
Price Target:
₹42.00
▼(-6.85% Downside)
The overall stock score is heavily influenced by the company's poor financial performance, marked by persistent losses and high leverage. Technical analysis indicates bearish momentum, and valuation metrics are unattractive with a negative P/E ratio. The absence of earnings call data and corporate events further limits any positive outlook.

Mahanagar Telephone Nigam Limited (MTNL) vs. iShares MSCI India ETF (INDA)

Mahanagar Telephone Nigam Limited Business Overview & Revenue Model

Company DescriptionMahanagar Telephone Nigam Limited (MTNL) is a telecommunications service provider operating primarily in the Indian regions of Delhi and Mumbai. Established in 1986, MTNL is a government-owned enterprise that offers a range of telecom services including fixed-line telephony, mobile services, broadband internet, and data services. As a major player in the telecommunications sector in India, MTNL aims to deliver reliable communication solutions and connectivity to both individual consumers and businesses.
How the Company Makes MoneyMTNL generates revenue through multiple streams primarily centered around its telecommunications services. The company's core revenue sources include fixed-line telephony services, mobile services (both prepaid and postpaid), and broadband internet services. Fixed-line services involve charges for installation, monthly rentals, and call tariffs. Mobile services generate income through subscriptions, call charges, data usage, and value-added services. Broadband services contribute through monthly subscription fees for internet connectivity. Additionally, MTNL has entered into partnerships and collaborations with other telecom operators and entities to offer leased line services, international long-distance services, and infrastructure sharing, further enhancing its revenue streams. The company also benefits from government support and initiatives aimed at expanding telecom accessibility, which positively influences its financial performance.

Mahanagar Telephone Nigam Limited Financial Statement Overview

Summary
Mahanagar Telephone Nigam Limited is facing significant financial challenges. The income statement reveals persistent losses and declining revenues. The balance sheet exhibits high leverage with negative equity, suggesting potential solvency issues. Cash flows are strained, with negative operating and free cash flows. The company needs to address cost inefficiencies, improve revenue streams, and manage its debt load to stabilize its financial position.
Income Statement
20
Very Negative
The company has consistently reported negative net income, indicating persistent losses. Gross profit margins are negative, signaling cost inefficiencies or pricing issues. Revenue has been declining over the years, with the most recent TTM showing a sharp drop compared to previous periods. EBITDA margin is positive in the latest period, but EBIT remains negative, indicating high depreciation and amortization costs. Overall, the income statement reflects severe profitability challenges and declining sales.
Balance Sheet
15
Very Negative
The balance sheet is concerning with negative stockholders' equity, indicating liabilities significantly exceed assets. The debt-to-equity ratio is not computable due to negative equity, but total debt has been rising, posing a leverage risk. The company’s equity ratio is negative, suggesting financial instability. Continuous increases in liabilities and decreasing asset base indicate financial distress.
Cash Flow
25
Negative
Cash flow from operations is negative, highlighting operational struggles in generating cash. Free cash flow is also negative, though there is a slight improvement in the latest TTM compared to previous years. The operating cash flow to net income ratio is not applicable due to negative figures. High financing cash flows indicate reliance on external funding. Overall, cash flows signal liquidity issues, but there are minor improvements in free cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2022Dec 2022Dec 2021
Income Statement
Total Revenue7.37B6.98B7.99B11.49B9.35B13.88B
Gross Profit-1.37B-6.20B-391.70M3.69B7.66B7.29B
EBITDA2.32B2.00B-1.14B3.08B1.64B5.39B
Net Income-32.84B-33.28B-32.68B-26.03B-29.15B-24.61B
Balance Sheet
Total Assets0.00102.26B107.17B123.17B116.44B133.75B
Cash, Cash Equivalents and Short-Term Investments667.30M2.10B1.36B1.49B49.18B1.65B
Total Debt0.00324.41B301.41B268.20B283.51B256.00B
Total Liabilities252.88B371.45B343.61B309.85B324.99B294.20B
Stockholders Equity-252.88B-269.19B-236.44B-186.68B-208.55B-160.45B
Cash Flow
Free Cash Flow0.00-20.98B569.70M6.91B201.70M-3.24B
Operating Cash Flow0.00-20.63B1.30B7.04B638.50M-2.25B
Investing Cash Flow0.00-415.60M1.07B2.04B-1.74B-2.59B
Financing Cash Flow0.0022.00B-3.19B-9.36B1.77B4.14B

Mahanagar Telephone Nigam Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price45.09
Price Trends
50DMA
47.28
Negative
100DMA
46.65
Negative
200DMA
47.06
Negative
Market Momentum
MACD
-0.60
Negative
RSI
49.27
Neutral
STOCH
33.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MTNL, the sentiment is Positive. The current price of 45.09 is above the 20-day moving average (MA) of 44.18, below the 50-day MA of 47.28, and below the 200-day MA of 47.06, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MTNL.

Mahanagar Telephone Nigam Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹26.00B24.55
4.19%10.32%
66
Neutral
₹9.84B19.62
0.34%19.70%-75.69%
63
Neutral
₹17.29B8.22
-5.30%-4.03%
56
Neutral
$13.75B13.2410.03%0.92%7.13%-12.93%
41
Neutral
₹19.09B
-0.38%-15.22%
39
Underperform
₹28.04B
-25.93%-9.67%
₹8.93B20.98
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:MTNL
Mahanagar Telephone Nigam Limited
45.09
-10.27
-18.55%
IN:DEN
DEN Networks Limited
35.98
-14.50
-28.72%
IN:GTLINFRA
GTL Infrastructure Ltd
1.53
-0.85
-35.71%
IN:HATHWAY
Hathway Cable & Datacom Ltd.
14.59
-5.84
-28.59%
IN:SATINDLTD
Sat Industries Limited.
86.98
-50.52
-36.74%
IN:SUYOG
Suyog Telematics Ltd.
797.80
-898.89
-52.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025