Mahanagar Telephone Nigam Limited (MTNL) AI Stock Analysis

• Market Cap: ₹27.51B
• Dividend Yield: N/A
• Average Volume (3M): 443.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -12.59%
• EPS Growth: -1.84%
• Country: IN
• Employees: 3,309
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -13.14
• Shares Outstanding: 630,000,000
• 10 Day Avg. Volume: 227,585
• 30 Day Avg. Volume: 443,031
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹47.00
• Price Target Upside: 8.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ₹47.00 ▲(8.77% Upside)

The most significant factor affecting the stock score is the company's poor financial performance, characterized by consistent losses, declining revenues, and a heavily leveraged balance sheet. Technical analysis provides a neutral outlook, with some positive momentum indicators. Valuation metrics underscore the ongoing profitability challenges faced by the company. Without earnings call and corporate events data, the evaluation is limited to these components.

Mahanagar Telephone Nigam Limited Business Overview & Revenue Model

Company Description

Mahanagar 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 Money

MTNL 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

The company's financial performance is severely challenged, with persistent losses, declining revenue, negative equity, and liquidity issues. Despite minor improvements in free cash flow, the overall financial health is very poor.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	6.98B	7.99B	11.49B	9.35B	13.88B
Gross Profit	-6.20B	-391.70M	3.69B	7.66B	7.29B
EBITDA	2.00B	-1.14B	3.08B	1.64B	5.39B
Net Income	-33.28B	-32.68B	-26.03B	-29.15B	-24.61B
Balance Sheet
Total Assets	102.26B	107.17B	123.17B	116.44B	133.75B
Cash, Cash Equivalents and Short-Term Investments	2.10B	1.36B	1.49B	49.18B	1.65B
Total Debt	324.41B	301.41B	268.20B	283.51B	256.00B
Total Liabilities	371.45B	343.61B	309.85B	324.99B	294.20B
Stockholders Equity	-269.19B	-236.44B	-186.68B	-208.55B	-160.45B
Cash Flow
Free Cash Flow	-20.98B	569.70M	6.91B	201.70M	-3.24B
Operating Cash Flow	-20.63B	1.30B	7.04B	638.50M	-2.25B
Investing Cash Flow	-415.60M	1.07B	2.04B	-1.74B	-2.59B
Financing Cash Flow	22.00B	-3.19B	-9.36B	1.77B	4.14B

Mahanagar Telephone Nigam Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MTNL, the sentiment is Negative. The current price of 43.21 is below the 20-day moving average (MA) of 47.59, below the 50-day MA of 49.40, and below the 200-day MA of 47.42, indicating a bearish trend. The MACD of -1.57 indicates Positive momentum. The RSI at 29.47 is Positive, neither overbought nor oversold. The STOCH value of 13.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MTNL.

Mahanagar Telephone Nigam Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HATHWAY	68 Neutral	₹25.45B	24.03		―	4.19%	11.08%
SATINDLTD	66 Neutral	₹10.78B	13.35		0.31%	15.56%	-76.52%
DEN	64 Neutral	₹16.99B	8.05		―	-5.30%	-4.03%
Sector *	60 Neutral	€4.92B	31.91	-10.66%	5.32%	6.31%	-42.84%
MTNL	41 Neutral	₹27.51B	―		―	-12.59%	-1.84%
GTLINFRA	40 Neutral	₹19.09B	―		―	-0.38%	-15.22%