Mahanagar Telephone Nigam Ltd
Telecom Services | Small Cap
Mahanagar Telephone Nigam Ltd (MTNL), operating in the Telecommunication Services sector, demonstrates a mixed financial performance. The company shows some strengths in solvency, driven by its equity ratio and minimal debt. However, liquidity, efficiency, and profitability metrics raise concerns, indicating challenges in short-term financial obligations, asset utilization, and generating profits. Growth is also a concern, primarily because of the absence of revenue growth and, thus, a very challenging profitability scenario. While some financial metrics like Capital Expenditure show a good score, they are not sufficient to offset the weaknesses in other areas. MTNL faces considerable challenges in maintaining financial stability and achieving sustainable growth, requiring strategic improvements in operational efficiency and revenue generation.
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- Valuation MetricsUndervalued
- Market Metrics
- Stock Reports
- Stock News
- Growth Ratio4.00
- Financial Ratio4.00
- Profitability Ratio2.00
- Efficiency Ratio4.67
- Coverage Ratio2.00
- Solvency Ratio10.00
- Liquidity Ratio2.00
- Peer Assessment
- Management AssessmentWeak
- Risk AssessmentWeak
- 1 HourBullish
- 2 HoursBullish
- 4 HoursBullish
- 1 DayBullish
- 1 WeekNeutral
- 1 MonthNeutral
Mahanagar Telephone Nigam Ltd (MTNL), operating in the Telecommunication Services sector, demonstrates a mixed financial performance. The company shows some strengths in solvency, driven by its equity ratio and minimal debt. However, liquidity, efficiency, and profitability metrics raise concerns, indicating challenges in short-term financial obligations, asset utilization, and generating profits. Growth is also a concern, primarily because of the absence of revenue growth and, thus, a very challenging profitability scenario. While some financial metrics like Capital Expenditure show a good score, they are not sufficient to offset the weaknesses in other areas. MTNL faces considerable challenges in maintaining financial stability and achieving sustainable growth, requiring strategic improvements in operational efficiency and revenue generation.
Overall Valuation Score
P/E RATIO (TTM)
-0.56
Industry Median
43.62
Small Cap Median
27.10
P/E RATIO
-0.60
P/B RATIO
-0.07
Industry Median
-0.00
Small Cap Median
-0.04
P/S RATIO
2.88
Industry Median
3.80
Small Cap Median
3.34
Others
PEG RATIO
-0.32
EV/EBITDA RATIO
9.47
The Calculations Shown Above Are Based on the Last Traded Price (LTP) of ₹31.87 as on Jun 19, 2026.
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The company's growth metrics present a concerning picture, with revenue and asset growth showing negative trends. While the earnings per share growth is positive, this is not sufficient to offset the overall lack of growth. The company must focus on identifying opportunities for expansion and strategic investments.
| Growth Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Revenue Growth Rate | -14.53 | -17.22 | -18.62 | -14.55 | -12.64 |
| Operating Profit Growth Rate | -105.18 | -505.33 | 42.76 | 11.06 | -2.49 |
| Earnings Per Share (EPS) Growth | -33.36 | 5.76 | 11.98 | 12.1 | 1.83 |
| Asset Growth Rate | -7.9 | -5.43 | -7.94 | -4.58 | |
| Net Income Growth Rate | -33.38 | 5.77 | 11.99 | 12.11 | 1.84 |
Revenue Growth Rate
Operating Profit Growth Rate
Earnings Per Share (EPS) Growth
Asset Growth Rate
Net Income Growth Rate
The company's financial metrics present a mixed picture. While capital expenditures show a positive score, adjusted earnings per share, book value per share and dividend per share are low, indicating potential areas of concern. Cash EPS is moderate, showing a moderate cash generation capability. The telecom sector is characterized by rapid technological advancements.
| Financial Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Adjusted Earnings Per Share (Adjusted EPS) | -38.95 | -41.27 | -46.25 | -51.86 | -52.83 |
| Cash Earnings Per Share (Cash EPS) | -24.89 | -29.06 | -34.68 | -41.3 | -43.11 |
| Book Value Per Share | -254.68 | -296.32 | -331.03 | -375.3 | -427.29 |
| Dividend Per Share (DPS) | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures (CapEx) |
Adjusted Earnings Per Share (Adjusted EPS)
Cash Earnings Per Share (Cash EPS)
Book Value Per Share
Dividend Per Share (DPS)
Capital Expenditures (CapEx)
The company's profitability ratios indicate significant challenges in generating profits from its operations. The low profit margins and returns on capital employed and assets suggest inefficiencies in cost management and asset utilization. The telecom sector is highly competitive.
| Profitability Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Gross Profit Margin | -58.93 | -93.65 | -124.49 | -143.68 | -155.01 |
| Return on Capital Employed (ROCE) | -3 | -5 | -7 | -8 | -7 |
| Return on Equity (ROE) | |||||
| Return on Assets (ROA) | 0.56 | -2.46 | -3.72 | -4.49 | -4.58 |
| Operating Margin | 5.4 | -26.46 | -46.42 | -60.33 | -67.34 |
| Net Margin | -177.31 | -226.54 | -311.76 | -409.01 | -476.79 |
Gross Profit Margin
Return on Capital Employed (ROCE)
Return on Equity (ROE)
Return on Assets (ROA)
Operating Margin
Net Margin
The company's efficiency in asset utilization is a mixed bag, with some ratios indicating potential areas of concern. The turnover ratios are low, while the receivable days and days sales in inventory are high, suggesting inefficiencies in managing assets. The telecommunications sector faces specific challenges related to infrastructure and technological advancements.
| Efficiency Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Fixed Asset Turnover Ratio | 0.22 | 0.2 | 0.19 | 0.18 | 0.18 |
| Inventory Turnover Ratio | N/A | N/A | N/A | N/A | N/A |
| Receivables Turnover Ratio | 1.8 | 1.71 | 1.59 | 1.56 | 1.25 |
| Days Sales in Inventory Ratio | N/A | N/A | N/A | N/A | N/A |
| Receivable Days | 203 | 213 | 229 | 234 | 293 |
| Capital Turnover Ratio | 0.58 | -0.61 | -0.8 | 1.68 | -0.21 |
Fixed Asset Turnover Ratio
Inventory Turnover Ratio
Receivables Turnover Ratio
Days Sales in Inventory Ratio
Receivable Days
Capital Turnover Ratio
The company's coverage ratios raise concerns about its ability to meet its interest and dividend obligations. The negative interest coverage ratio indicates potential difficulties in servicing its debt. The telecom sector is capital intensive.
| Coverage Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Interest Coverage Ratio | -0.16 | -0.21 | -0.23 | -0.21 | -0.14 |
| Equity Dividend Coverage Ratio |
Interest Coverage Ratio
Equity Dividend Coverage Ratio
The company's solvency position shows significant strengths, driven by a strong equity ratio and minimal reliance on debt. This indicates a stable financial structure and a lower risk of financial distress. However, it is important to consider whether this conservative approach is optimal for growth and investment opportunities.
| Solvency Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Debt Ratio | 7.74 | -8.88 | -16.81 | 50.78 | -7 |
| Debt to Equity Ratio | -1.15 | -0.9 | -0.94 | -1.02 | -0.88 |
| Equity Ratio | -6.74 | 9.88 | 17.81 | -49.78 | 8 |
| Debt To Asset Ratio | 1.37 | 1.36 | 1.69 | 2.24 | 2.3 |
Debt Ratio
Debt to Equity Ratio
Equity Ratio
Debt To Asset Ratio
The company's liquidity position is concerning, as indicated by the low score. The company might find it difficult to meet its short-term obligations. This situation could restrict the company's ability to invest in growth opportunities or manage unexpected expenses. A potential positive is that the telecom sector has some government support.
| Liquidity Ratios | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Current Ratio | 1.22 | 0.87 | 0.91 | 1.05 | 0.75 |
| Quick Ratio | 1.22 | 0.87 | 0.91 | 1.05 | 0.75 |
| Cash Ratio | 0 | 0 | 0 | 0 | 0 |
| Operating Cash Flow Ratio | 0 | 0 | 0 | 0 | 0 |
Current Ratio
Quick Ratio
Cash Ratio
Operating Cash Flow Ratio
Peer Comparison empowers investors to evaluate a company against its industry peers using key financial metrics like P/E ratio, EPS, and profit margins. It helps identify whether a company is overvalued, undervalued, or performing in line with competitors. Investors can use this data to spot opportunities, assess risks, and make informed decisions. This contextual view adds depth beyond standalone company analysis.
| NO | Company Name | Health Score | P/E Ratio | Valuation | OPM | EPS | Latest Profit & Loss |
|---|---|---|---|---|---|---|---|
| 1 | Mahanagar Telephone Nigam Ltd | 4.63 | -0.60 | Undervalued | -480.00 | -52.75 | -3328.00 |
The management of Mahanagar Telephone Nigam Ltd (MTNL) appears ineffective due to consistent declines in sales and profits, significantly negative operating profit margins, and a high level of debt. The company's reliance on other income to offset losses is concerning, and negative returns on capital employed and equity highlight operational inefficiencies. While promoter holding remains stable, the overall financial instability suggests that management faces substantial challenges in achieving sustainable profitability.
| Category | Metric | Value | Assessment |
|---|---|---|---|
| PROS | Promoter Holding | 56.25% | Stable promoter holding indicates some confidence |
| CONS | Sales Growth | -15% (10Y CAGR) | Declining sales trajectory |
| Profit Growth | -2% (10Y CAGR) | Inconsistent profit growth | |
| OPM | -69% (Mar 2025) | Poor operating efficiency | |
| Debt/Equity Ratio | Negative Equity | High leverage due to negative equity |
Financial Performance & Growth
Mahanagar Telephone Nigam Ltd (MTNL) shows declining financial performance and growth. Sales have consistently decreased, with a 10-year Compounded Sales Growth rate of -15% and a TTM Sales Growth of -13%. Profitability is weak, with a significantly negative operating profit margin (OPM) of -69% in Mar 2025. Reliance on 'Other Income' to offset operating losses raises concerns about the sustainability of financial results.
| Metric | 2014-2016 | 2017-2019 | 2020-2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Sales CAGR (%) | -3.3% | -12.2% | -12.9% | -18.5% | -14.7% | -12.6% |
| OPM (%) | -23.7% | -48% | -15% | -46% | -60% | -69% |
Capital Efficiency & Returns
MTNL demonstrates poor capital efficiency and returns. The Return on Capital Employed (ROCE) is consistently negative, indicating inefficient use of capital. Given the negative equity, Return on Equity (ROE) is not meaningful.
| Metric | 2014-2016 | 2017-2019 | 2020-2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| ROCE (%) | -9% | -13.7% | -5.3% | -7% | -8% | -7% |
Financial Health & Prudence
MTNL's financial health is weak, characterized by substantial debt and negative equity. Borrowings have increased over the years. The interest coverage ratio is negative due to operating losses, making it difficult to meet interest obligations from operating profits. The company does not pay dividends, reflecting its poor financial condition.
| Metric | 2014-2016 | 2017-2019 | 2020-2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Borrowings (Cr) | 13690 | 16485.7 | 25237 | 28351 | 30141 | 32441 |
| Interest Coverage Ratio | Negative | Negative | Negative | Negative | Negative | Negative |
Strategic & Operational Indicators
MTNL's operational efficiency is below average. Debtor days have increased significantly over the years, indicating challenges in collecting payments. The cash conversion cycle has also increased, reflecting inefficiencies in working capital management. While there are fixed assets, their contribution to revenue generation appears limited given the declining sales and negative operating profits.
| Metric | 2014-2016 | 2017-2019 | 2020-2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Debtor Days | 40 | 76.7 | 209.7 | 229 | 234 | 293 |
| Cash Conversion Cycle | 40 | 76.7 | 209.7 | 229 | 234 | 293 |
MTNL's risk assessment is high due to its poor financial health and operational inefficiencies, including declining revenue, negative profitability, and substantial debt. Increasing debtor days and cash conversion cycle indicate worsening working capital management. The negative net worth and reliance on other income amplify the risk profile. The absence of dividends underscores the financial strain.
Off-balance sheet exposure quantification
There is no specific data available to quantify off-balance sheet exposures for MTNL.
Contingent liability evaluation
There is no specific data available to evaluate contingent liabilities for MTNL.
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Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Market Sentiment
Analysis Driven By 26 Technical Indicators From The 1 Hour Timeframe
Trend Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Momentum Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Volatility Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bearish
Volume Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
- IndicatorValueSignal
- SMA 1031.97Bullish
- SMA 2031.97Bullish
- SMA 5031.00Bullish
- EMA 1031.93Bullish
- EMA 2031.83Bullish
- EMA 5031.32Bullish
- DEMA 1031.95Bullish
- DEMA 2032.14Bearish
- DEMA 5031.99Bullish
- TEMA 1031.86Bullish
- TEMA 2032.01Bullish
- TEMA 5032.30Bearish
- MACD0.20Bearish
- ADX59.07Strong Trend
- IndicatorValueSignal
- RSI58.08Neutral
- CCI8.36Neutral
- ROC 90.12Bullish
- ROC 140.16Bullish
- ROC 252.46Bullish
- Stoch K31.76Neutral
- Stoch D25.53Neutral
- IndicatorValueSignal
- BB Upper32.51Neutral
- BB Middle31.97Neutral
- BB Lower31.42Neutral
- ATR0.40High Volatility
- IndicatorValueSignal
- MFI58.93Neutral
Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Market Sentiment
Analysis Driven By 26 Technical Indicators From The 2 Hours Timeframe
Trend Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Momentum Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Volatility Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Volume Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Strong Bearish
- IndicatorValueSignal
- SMA 1032.00Bullish
- SMA 2031.63Bullish
- SMA 5030.74Bullish
- EMA 1031.85Bullish
- EMA 2031.53Bullish
- EMA 5030.93Bullish
- DEMA 1032.09Bearish
- DEMA 2032.12Bearish
- DEMA 5031.52Bullish
- TEMA 1031.97Bullish
- TEMA 2032.26Bearish
- TEMA 5031.92Bullish
- MACD0.43Bearish
- ADX55.88Strong Trend
- IndicatorValueSignal
- RSI63.72Neutral
- CCI57.23Neutral
- ROC 9-0.56Bearish
- ROC 142.99Bullish
- ROC 2512.10Bullish
- Stoch K37.65Neutral
- Stoch D39.12Neutral
- IndicatorValueSignal
- BB Upper32.43Neutral
- BB Middle31.63Neutral
- BB Lower30.84Neutral
- ATR0.55Low Volatility
- IndicatorValueSignal
- MFI84.71Overbought
Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Market Sentiment
Analysis Driven By 26 Technical Indicators From The 4 Hours Timeframe
Trend Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Momentum Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Volatility Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Volume Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
- IndicatorValueSignal
- SMA 1031.63Bullish
- SMA 2030.70Bullish
- SMA 5030.19Bullish
- EMA 1031.55Bullish
- EMA 2031.09Bullish
- EMA 5030.50Bullish
- DEMA 1032.11Bearish
- DEMA 2031.72Bullish
- DEMA 5031.19Bullish
- TEMA 1032.23Bearish
- TEMA 2032.08Bearish
- TEMA 50N/AN/A
- MACD0.51Bullish
- ADX34.25Strong Trend
- IndicatorValueSignal
- RSI62.84Neutral
- CCI79.25Neutral
- ROC 91.91Bullish
- ROC 1410.29Bullish
- ROC 257.33Bullish
- Stoch K73.54Neutral
- Stoch D73.88Neutral
- IndicatorValueSignal
- BB Upper32.92Neutral
- BB Middle30.70Neutral
- BB Lower28.49Neutral
- ATR0.85Low Volatility
- IndicatorValueSignal
- MFI78.66Neutral
Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Market Sentiment
Analysis Driven By 33 Technical Indicators From The 1 Day Timeframe
Trend Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Strong Bullish
Momentum Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Volatility Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Volume Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Strong Bearish
- IndicatorValueSignal
- SMA 1030.60Bullish
- SMA 2030.35Bullish
- SMA 5030.51Bullish
- SMA 10029.51Bullish
- SMA 20034.81Bearish
- EMA 1030.94Bullish
- EMA 2030.55Bullish
- EMA 5030.17Bullish
- EMA 10031.03Bullish
- EMA 20034.16Bearish
- DEMA 1031.53Bullish
- DEMA 2031.02Bullish
- DEMA 5030.18Bullish
- DEMA 10028.18Bullish
- DEMA 20028.51Bullish
- TEMA 1031.91Bullish
- TEMA 2031.24Bullish
- TEMA 5031.29Bullish
- TEMA 10029.40Bullish
- TEMA 20026.20Bullish
- MACD0.40Bullish
- ADX17.03Weak Trend
- IndicatorValueSignal
- RSI60.34Neutral
- CCI154.64Overbought
- ROC 146.13Bullish
- ROC 259.95Bullish
- Stoch K76.03Neutral
- Stoch D74.29Neutral
- IndicatorValueSignal
- BB Upper32.23Neutral
- BB Middle30.35Neutral
- BB Lower28.48Neutral
- ATR1.30Low Volatility
- IndicatorValueSignal
- MFI82.02Overbought
Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Market Sentiment
Analysis Driven By 21 Technical Indicators From The 1 Week Timeframe
Trend Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Momentum Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Volatility Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bearish
Volume Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
- IndicatorValueSignal
- SMA 2029.32Bullish
- SMA 5036.65Bearish
- EMA 2030.84Bullish
- EMA 5035.02Bearish
- DEMA 2028.45Bullish
- DEMA 5029.56Bullish
- TEMA 2029.74Bullish
- TEMA 5026.12Bullish
- MACD-1.50Bullish
- ADX15.07Weak Trend
- IndicatorValueSignal
- RSI45.35Neutral
- CCI-67.33Neutral
- ROC 1414.26Bullish
- ROC 25-14.45Bearish
- Stoch K71.66Neutral
- Stoch D67.49Neutral
- IndicatorValueSignal
- BB Upper34.95Neutral
- BB Middle29.32Neutral
- BB Lower23.69Neutral
- ATR3.28High Volatility
- IndicatorValueSignal
- MFI46.92Neutral
Overall Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Market Sentiment
Analysis Driven By 25 Technical Indicators From The 1 Month Timeframe
Trend Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bearish
Momentum Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
Volatility Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Bullish
Volume Score
Strong Bearish
Bearish
Neutral
Bullish
Strong Bullish
Neutral
- IndicatorValueSignal
- SMA 630.41Bearish
- SMA 1237.27Bearish
- SMA 2443.89Bearish
- EMA 631.30Bearish
- EMA 1235.06Bearish
- EMA 2437.55Bearish
- DEMA 627.76Bullish
- DEMA 1229.81Bullish
- DEMA 2437.21Bearish
- TEMA 628.07Bullish
- TEMA 1226.39Bullish
- TEMA 2431.69Bearish
- MACD2.57Bearish
- ADX34.58Strong Trend
- IndicatorValueSignal
- RSI48.58Neutral
- CCI-27.77Neutral
- ROC 25-22.49Bearish
- ROC 5033.58Bullish
- Stoch K16.72Oversold
- Stoch D30.00Neutral
- IndicatorValueSignal
- BB Upper56.58Neutral
- BB Middle40.78Neutral
- BB Lower24.98Neutral
- ATR9.63Low Volatility
- IndicatorValueSignal
- MFI60.29Neutral