NSEI:MTNL

Stock Analysis Report

Mahanagar Telephone Nigam

Executive Summary

Mahanagar Telephone Nigam Limited provides fixed-line telecommunication services in the cities of Delhi and Mumbai, India.

Snowflake

Fundamentals

Weak fundamentals or lack of information.

Risks

  • Mahanagar Telephone Nigam has significant price volatility in the past 3 months.
  • Mahanagar Telephone Nigam is not covered by any analysts.

Similar Companies

Share Price & News

How has Mahanagar Telephone Nigam's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-20.3%

NSEI:MTNL

-0.1%

IN Telecom

-1.4%

IN Market


1 Year Return

-68.2%

NSEI:MTNL

-15.7%

IN Telecom

-14.5%

IN Market

MTNL underperformed the Telecom industry which returned -15.7% over the past year.

MTNL underperformed the Market in India which returned -14.5% over the past year.


Share holder returns

MTNLIndustryMarket
7 Day-20.3%-0.1%-1.4%
30 Day-26.9%-6.0%-4.4%
90 Day-45.6%-9.6%-8.1%
1 Year-68.2%-68.2%-11.2%-15.7%-12.7%-14.5%
3 Year-76.6%-76.6%-18.2%-28.8%16.7%10.5%
5 Year-83.1%-83.1%9.4%-6.2%35.0%22.2%

Price Volatility Vs. Market

How volatile is Mahanagar Telephone Nigam's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mahanagar Telephone Nigam undervalued based on future cash flows and its price relative to the stock market?


In this section, we usually try to help investors determine whether Mahanagar Telephone Nigam is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Mahanagar Telephone Nigam has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of MTNL’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Mahanagar Telephone Nigam regulatory filings.
  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

How is Mahanagar Telephone Nigam expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.1%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mahanagar Telephone Nigam has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Mahanagar Telephone Nigam performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mahanagar Telephone Nigam does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Mahanagar Telephone Nigam's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Mahanagar Telephone Nigam's 1-year growth to the Asia Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Mahanagar Telephone Nigam has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Mahanagar Telephone Nigam has efficiently used its assets last year compared to the Asia Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Mahanagar Telephone Nigam improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Mahanagar Telephone Nigam's financial position?


Financial Position Analysis

Mahanagar Telephone Nigam's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Mahanagar Telephone Nigam's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Mahanagar Telephone Nigam has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Mahanagar Telephone Nigam's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Mahanagar Telephone Nigam has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Mahanagar Telephone Nigam has less than a year of cash runway based on current free cash flow.

Unable to confirm if Mahanagar Telephone Nigam has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

What is Mahanagar Telephone Nigam's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Mahanagar Telephone Nigam's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Mahanagar Telephone Nigam's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Mahanagar Telephone Nigam has not reported any payouts.

Unable to verify if Mahanagar Telephone Nigam's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Mahanagar Telephone Nigam has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Mahanagar Telephone Nigam's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Sunil Kumar 0

0.1yrs

Tenure

₹2,832,621

Compensation

Mr. Sunil Kumar, ITS, has been the Director of HR & EB at Mahanagar Telephone Nigam Limited since June 21, 2013. Mr. Kumar has been Chairman and Managing Director at Mahanagar Telephone Nigam Limited sinc ...


CEO Compensation Analysis

Sunil's remuneration is higher than average for companies of similar size in India.

Sunil's compensation has increased whilst company is loss making.


Management Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

The tenure for the Mahanagar Telephone Nigam management team is about average.


Board Age and Tenure

3.1yrs

Average Tenure

66yo

Average Age

The tenure for the Mahanagar Telephone Nigam board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Suhru Sayal (56yo)

    Company Secretary & Compliance Officer

    • Tenure: 0.0yrs
    • Compensation: ₹1.68m
  • Nirmal Joshi (60yo)

    Executive Director of Delhi

    • Tenure: 2.7yrs
  • Sunil Kumar

    Chairman

    • Tenure: 0.1yrs
    • Compensation: ₹2.83m
  • Sanjeev Kumar

    Director of Technical & Director

    • Tenure: 3.1yrs
    • Compensation: ₹2.66m
  • Pravin Punj

    Executive Director of Mumbai

    • Tenure: 4.1yrs
  • S. Jain

    COO & Deputy GM of EB

    • Tenure: 0.0yrs
  • Deepak Kashyap (57yo)

    Chief Vigilance Officer

    • Tenure: 0.0yrs

Board Members

  • Sunil Kumar

    Chairman

    • Tenure: 0.1yrs
    • Compensation: ₹2.83m
  • Rakesh Nangia

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: ₹80.00k
  • Ashok Mittal

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: ₹80.00k
  • Amit Yadav

    Government Nominee Director

    • Tenure: 3.4yrs
  • Tiakala Yaden

    Government Nominee Director

    • Tenure: 3.3yrs
  • Sanjeev Kumar

    Director of Technical & Director

    • Tenure: 3.1yrs
    • Compensation: ₹2.66m
  • Chinmay Basu (68yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹30.00k
  • K. Gokulchandran (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹20.00k
  • G. Reddy (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹40.00k
  • Suneeta Trivedi (65yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹30.00k

Company Information

Mahanagar Telephone Nigam Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mahanagar Telephone Nigam Limited
  • Ticker: MTNL
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₹3.604b
  • Shares outstanding: 630.00m
  • Website: https://www.mtnl.in

Number of Employees


Location

  • Mahanagar Telephone Nigam Limited
  • Mahanagar Doorsanchar Sadan
  • 5th Floor
  • New Delhi
  • Delhi
  • 110003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500108BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1998
MTNLNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1998
MTEN.YOTCPK (Pink Sheets LLC)ADS EACH REPR 2 ORD INR10USUSDOct 2001

Biography

Mahanagar Telephone Nigam Limited provides fixed-line telecommunication services in the cities of Delhi and Mumbai, India. The company also provides GSM and CDMA based mobile services; and Internet, broadb ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:44
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.