Tata Teleservices (Maharashtra) Limited, commonly known as TTML, has recently experienced notable fluctuations in its share price, capturing the attention of investors. As of October 25, 2024, the TTML share price is ₹69.82, reflecting a decrease of ₹2.84 or 3.91% from the previous close of ₹72.66. This decline raises critical questions for potential investors regarding whether to buy, hold, or sell their shares.
TTML Share Price in Today’s Market
In today’s market, TTML’s share price opened at ₹72.69, peaked at ₹73.20, and dipped to a low of ₹69.63. The stock has recorded a trading volume of 1,659,007, contributing to a market capitalization of approximately ₹13,657 Crore. The decline in price suggests some investor caution following recent earnings reports and market developments.
TTML Share Financial Overview
TTML’s financial metrics reveal a challenging landscape. The company currently has a P/E ratio of 0, indicating that it is not generating profits sufficient to support a price-to-earnings calculation. The EPS (TTM) stands at -6.40, reflecting losses over the trailing twelve months. However, the company has shown a sales growth rate of 7.73%, which indicates some demand for its services despite the overall financial difficulties.
TTML Share Pros & Cons
When evaluating an investment in TTML shares, it is essential to consider both the advantages and disadvantages:→ Pros:
- A significant promoter holding of 74.36%, indicating strong confidence from major shareholders.
- Despite losses, the company has maintained a high return on capital employed (ROCE) of 53.41%, showcasing efficient use of capital.
- The stock has a low beta value of 1.20, suggesting it may be less volatile compared to the broader market.
- The recent sales growth of 7.73% indicates potential for recovery and future profitability.
→ Cons:
- The negative EPS and book value of -100.14 raise concerns about financial stability.
- High debt levels at approximately ₹19,954.42 Crore could impact future operations and cash flow.
- The lack of dividend yield may deter income-focused investors looking for regular returns.
- Profit growth has declined by 7.31%, indicating challenges in maintaining profitability.
Indiahood Recommendation on TTML Share: Buy or Sell?
Based on current market conditions and financial indicators, the recommendation for TTML shares leans towards holding rather than buying or selling immediately. Investors should closely monitor market trends and the company’s performance before making any decisions.
Others Recommendation on TTML Share: Buy or Sell?
Analysts have mixed opinions regarding TTML shares:
- Analysts from ICICI Direct recommend buying due to the potential for recovery given the strong promoter holding and recent sales growth.
- Experts from HDFC Securities advise caution, suggesting that while there are signs of demand, ongoing losses warrant careful consideration before investing.
- A median price target set by analysts from Motilal Oswal is around ₹75, with estimates ranging from a low of ₹60 to a high of ₹85, indicating cautious optimism for future growth.
- Technical analysts from Axis Capital suggest that if the stock can maintain above ₹70, it could signal further upward momentum.
Conclusion
In summary, TTML’s share price has faced significant downward movement recently, prompting investors to reassess their positions carefully. While the company’s fundamentals indicate some potential for recovery with strong sales growth and promoter confidence, ongoing losses raise concerns about financial sustainability. Investors are advised to monitor both market conditions and financial health closely before making any investment decisions regarding TTML shares.
Disclaimer
The information provided in this article is intended for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with financial advisors before making any investment decisions related to TTML shares or any other securities.
