{"id":46912,"date":"2024-10-29T14:44:38","date_gmt":"2024-10-29T09:14:38","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=46912"},"modified":"2024-10-29T14:44:39","modified_gmt":"2024-10-29T09:14:39","slug":"ttml-share-price-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/ttml-share-price-all-you-need-to-know\/","title":{"rendered":"\u00a0TTML Share Price: All You Need to Know\u00a0"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p><\/p>\n\n\n\n<p>Tata Tele (Maharashtra) Limited (TTML), Tata Group&#8217;s telecom arm, offers a wide range of enterprise telecommunications services, both wired and wireless. It provides services under the name Tata Tele Business Services (TTBS).<\/p>\n\n\n\n<p>Incorporated on March 13th, 1995, Hughes Ispat Limited secured essential telecom licenses to offer cellular services in the Maharashtra region. In December 2002, the company was acquired by Tata Group and renamed Tata Tele Maharashtra Limited.\u00a0<\/p>\n\n\n\n<p>The company has been struggling to achieve growth due to rising competition. However, with Tata Sons infusing nearly \u20b960,000 crore for debt payments in the past six years, could this become a turnaround stock? Let&#8217;s dive into the analysis of TTML share price.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">What does TTML Do?<\/h2>\n\n\n\n<p>Operating under the Tata Tele Business Services (TTBS), it offers connectivity and communications solutions for businesses in Maharashtra and Goa.&nbsp;<\/p>\n\n\n\n<p>TTBS offers India&#8217;s businesses the most extensive information and communication technology (ICT) services, including connectivity, collaboration, cloud, security, IoT, and marketing solutions.\u00a0<\/p>\n\n\n\n<p>The company also operated a consumer mobile business, partnering with Docomo and Tata Teleservices, but it later suspended operations due to unsustainable competition. On July 1, 2019, it sold its consumer mobile business to Bharti Airtel.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">TTML Business Overview<\/h2>\n\n\n\n<p>The company has a fiber optic network of over 1.3 lakh KM, offering a comprehensive portfolio of smart digital solutions. It includes<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cloud Infrastructure<\/li>\n\n\n\n<li>Cybersecurity Solutions<\/li>\n\n\n\n<li>Managed Services<\/li>\n\n\n\n<li>Business Communications<\/li>\n\n\n\n<li>Network &amp; Connectivity<\/li>\n\n\n\n<li>Communication Suite for Collaboration &amp; Productivity<\/li>\n<\/ul>\n\n\n\n<p>TTBS primarily focuses on catering and empowering micro, small, and medium enterprises spanning various industries.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">TTML Management Team<\/h2>\n\n\n\n<p><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\"><strong>Mr. Amur S. Lakshminarayanan<\/strong>\u00a0is the TTML&#8217;s Chairman and a Tata Group veteran. And<\/span> has also been <span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">MD &amp; CEO of Tata Communications since November 2019.<\/span> He is an engineering graduate from BITS Pilani. Before joining Tata Communication, he was President and CEO of TCS, Japan.\u00a0<\/p>\n\n\n\n<p><strong>Mr. Harjit Singh<\/strong><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">&nbsp;is the Managing Director and CEO of TTML and is responsible for the company&#8217;s growth and expansion as a leading digital service provider in the MSME category. He is also a Tata veteran and has been associated with companies such as Tata Housing, Tata AutoComp Systems, Tata Communication, and Neotel<\/span> before joining TTML in 2019.&nbsp;<\/p>\n\n\n\n<p><strong>Mr. Shinu Mathai <\/strong>is the Chief Financial Officer of TTML and joined the company in March 2004 and worked in various leadership roles.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">TTML Shareholding Pattern<\/h2>\n\n\n\n<p>The company&#8217;s shareholding pattern has not changed significantly over the last year, and no <a href=\"https:\/\/www.equentis.com\/blog\/what-are-mutual-funds-a-comprehensive-guide\/\">mutual funds<\/a> have invested in it.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXeo4vkQA8Rs2W0qSxwoAUlrA6Kob6He_2hbVy3Ztm6l0Uyafy7z-eAb6N3yQScJJo-Cb5b3de2o8SuR-VsS653zNkx2tg90AWbuSW5B-ac3ODyIjyKlM-QkTq_Z081X7feaOHSGU_Jdhl-V-inFRny57To?key=Y5-XMi2GLrd-9wgmsECp5Q\" alt=\"\" style=\"width:548px;height:auto\" title=\"Chart\"><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">TTML Financial Performance Review<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Revenue From Operations<\/h3>\n\n\n\n<p>In the last four financial years, TTML\u2019s revenue from operations has grown at a lower single digit of 3.37% annually. In FY24, the company posted \u20b91,191.65 crore in revenue from operation, up from \u20b91,106.7 crore in FY23.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXeJ81x0JtpJEpV5VBJx_B0faB5xYkZAXGcZOgUJJoVowCg3FfBTkDWKocD-4HoHPZ3E1LNB9K1BBowALm5Mo2ltlEK14DCOEFGGuHVSi2t_mIVV7KDpthjdfJQpBY40FNyTH6UEP-Hp3OtEnAoc3Ex5xLA?key=Y5-XMi2GLrd-9wgmsECp5Q\" alt=\"\" style=\"width:545px;height:auto\" title=\"Chart\"><\/figure>\n\n\n\n<p>In Q1FY25, the company\u2019s revenue from operations increased by 13.31% year-over-year to \u20b9323.50 crore from \u20b9285.51 crore in Q1FY24.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">EBITDA<\/h3>\n\n\n\n<p>The company&#8217;s EBITDA rose marginally in the last four years, from \u20b9500.3 crores in FY21 to \u20b9536 crores. The EBITDA margin is maintained at 45%.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXeMe8DKJUCRRDcUOYnu340tUphT-JV0yxaD47_qMFFLD5JNtpVRqccLgN0qqqRsYI71zIgS7Su9RwtoNllyM6OBtJcLWrhKQgadKUZV9LeZ4-jNhueyNRDdzEsuyIMT3tG07jM8G_6Jrb2a2prboAH2pfGI?key=Y5-XMi2GLrd-9wgmsECp5Q\" alt=\"\" style=\"width:526px;height:auto\" title=\"Chart\"><\/figure>\n\n\n\n<p>In Q1FY25, the company&#8217;s EBITDA was reported at \u20b9138.53 crores, up from \u20b9127.20 crores in Q1FY24.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Profit After Tax<\/h3>\n\n\n\n<p>Because of higher interest expenses, the company is reporting losses which are greater than its revenue.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXfOeoGs4A7X9gMzzWGj5cVV7dpT03uHVusZlk2XxHcuzdWQF1ygZix73igVDlJSZBg6WHjonJlfka9g54r-9S1KQQWuBVpP30CBQeJnVfck53H2UjW9qzlhf2Ho5cxS4AJH6Pl9p0SgzYKICUEcVYv_YyXL?key=Y5-XMi2GLrd-9wgmsECp5Q\" alt=\"\" style=\"width:538px;height:auto\" title=\"Chart\"><\/figure>\n\n\n\n<p>The company reported a net loss of \u20b9323.40 crore in Q1 FY25, compared to a loss of&nbsp; \u20b9301.18 crore in Q1 FY24.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">TTML Key Financial Ratios<\/h2>\n\n\n\n<p><strong>Current Ratio<\/strong>: The company&#8217;s ratio deteriorated in FY24 to 0.54 times from 0.64 times in FY23.\u00a0<\/p>\n\n\n\n<p><strong>Debt-to-equity Ratio: <\/strong>The debt-to-equity ratio has stayed constant at 1.04 times for the last two financial years.&nbsp;<\/p>\n\n\n\n<p><strong>Interest Service Coverage Ratio: <\/strong>This metric measures the company\u2019s ability to pay its debt interest costs. It has deteriorated to 0.80 times in FY24 from 0.85 times in FY25, indicating that the company is falling short of meeting interest costs in a financial year.&nbsp;<\/p>\n\n\n\n<p><strong>Debt Service Coverage Ratio (DSCR): <\/strong>Similar to the interest service coverage ratio, this ratio indicates a company&#8217;s ability to repay debt. In FY24, DSCR was 0.08 times, improving marginally from 0.06 times in FY23. It suggests the company lacks enough financial means to repay its debt.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">TTML Share Price Analysis<\/h2>\n\n\n\n<p>The company has not created wealth for its investors. Tata Tele was listed on the <a href=\"https:\/\/www.equentis.com\/blog\/what-is-stock-market-and-how-it-works\/\">stock market<\/a> in October 2000, while its previous owner still owned it. The IPO&#8217;s issue price was \u20b912.&nbsp;<\/p>\n\n\n\n<p>Because of the stiff competition in the telecom space following Jio&#8217;s arrival in 2016, TTML lost most of its market share due to the closure of its cellular operation, and its share price dropped to the level of a penny stock. However, it bounced back due to the strong performance of its enterprise business.&nbsp;<\/p>\n\n\n\n<p>TTML share price was trading at \u20b92.70 on 14th October 2019 and made a high of \u20b9290 on 10th Jan 2022. It is currently trading around \u20b980 level for quite some time now.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXfmAAL_dXQLfaeXBw0D5ou_lhuV68cXSWeUHxXGBnNIQPT2pDOthmD_CoxfBg7Wk43oVgykidWSG63KLs6ZoogZfn3sUfhzbOKADoksD_emRBJecuVsNqODolsdJxIpNrp96hJcRIWFiWvCQRXveUkNPh_C?key=Y5-XMi2GLrd-9wgmsECp5Q\" alt=\"\" style=\"width:607px;height:auto\" title=\"\"><figcaption class=\"wp-element-caption\">Source: TradingView<\/figcaption><\/figure>\n\n\n\n<p>The company has no history of paying dividends. In August 2013, the company issued bonus shares at a 2:15 ratio, which means that for every 15 shares held, shareholders received two bonus shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Tata Tele Maharashtra Limited- TTML Debt Position<\/h2>\n\n\n\n<p>TTML&#8217;s net debt was \u20b919,954 crores at the end of FY24, up slightly from \u20b919,825 crore at the end of FY23.&nbsp;<\/p>\n\n\n\n<p>The interest expenses in FY24 increased to \u20b91,621 crores from \u20b91,501 crore in FY23.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>FY23<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>FY24<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Total Borrowings (in \u20b9 cr)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b919,825<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b919,954&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Interest Expenses (in \u20b9 cr)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b91,501<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20b91,621<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Despite its low debt-to-equity and interest service coverage ratio, TTML&#8217;s debt profile has been assigned a stable outlook by CARE Ratings.\u00a0<\/p>\n\n\n\n<p>Tata Sons, its holding company, continues to provide strong financial support, which has resulted in a stable outlook. It has invested \u20b946,595 crore in TATA Tele Business Services (TTBS) and continues to support the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Valuations Score<\/h3>\n\n\n\n<p>The valuation metric doesn\u2019t apply to TTML because it is a loss-making company. Hence, the Price-to-Earnings (PE) Ratio cannot be calculated. With a negative net worth, the P\/B Ratio is also negative.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Market Cap to Sales<\/h3>\n\n\n\n<p>The company&#8217;s market cap-to-sales ratio is around 13 and is trading close to its 5-year median, which indicates that it is neither overvalued nor undervalued in these valuation metrics.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcAv_EdRujbzTVf0fnpWQRCu8waXhaENcL3e0gy84CWr0ng7NIlXf-zUz4NDU7lPS3_VUuGgInIUpFdxzE0BwMnw-nNMt7hqMrbQL-8nQVLXCrtvl-5Kz62JwbtW3CJ_nupMffWnz9KQoMI3Fdx2DBd8DDz?key=Y5-XMi2GLrd-9wgmsECp5Q\" alt=\"\" style=\"width:625px;height:auto\" title=\"\"><figcaption class=\"wp-element-caption\"><em>Source: Screener.in<\/em><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>However, it would help if you compared TTML share price with that of peer companies and analyzed the valuation metrics.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Industry Outlook<\/h2>\n\n\n\n<p>India is the second-largest telecom market in the world, with a teledensity of 85.87% at the end of May 2024. According to IBEF, the total number of telephone subscribers stood at 1,203.69 million, and Wired broadband subscribers stood at 41.31 million.<\/p>\n\n\n\n<p>The percentage of digital penetration in the MSME sector is still lower. According to a report by Redseer, India is home to about 64 million MSMEs, contributing 30% to the nation\u2019s GDP. However, the current digital penetration among MSMEs is 12%, which opens up many opportunities for players like TTML.\u00a0<\/p>\n\n\n\n<p>To make MSME more digitally empowered, the Government of India has launched the Digital MSME Scheme for the increased adoption of digital tools, applications, and technologies. The government will provide subsidies to MSME units for using cloud-based software,<\/p>\n\n\n\n<p>All these factors can offer a considerable growth potential for TTML <a href=\"https:\/\/www.equentis.com\/blog\/reading-stock-charts-the-basics\/\">stock price<\/a>.\u00a0<\/p>\n\n\n\n<p class=\"has-ast-global-color-5-color has-vivid-red-background-color has-text-color has-background has-link-color wp-elements-9ce0f53ce9b064a07752f45f1a6f5b01\">Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis &#8211; Research &amp; Ranking. We will not be liable for any losses that may occur. <a href=\"https:\/\/www.equentis.com\/blog\/mukul-agrawal-portfolio-shareholdings-investments-all-you-need-to-know\/\">Investments<\/a> in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by <a href=\"https:\/\/www.equentis.com\/blog\/sebi-registered-investment-advisor-meaning-eligibility\/\">SEBI<\/a>, membership of BASL &amp; the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQ<\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \"><strong>What does TTML do?<\/strong><\/h5><p class=\"saswp-faq-answer-text\">Incorporated in 1995, the company specializes in providing wireline voice, data, Cloud, and SaaS solutions to enterprise customers with a strong focus on the MSME sector.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \"><strong>How has the TTML share price performed in the last 5 years?<\/strong><\/h5><p class=\"saswp-faq-answer-text\">Over the last 5 years, TTML&#8217;s share price has increased by over 2800%, from a low of \u20b92.70 on October 14, 2019, to a high of \u20b9290 on January 10, 2022.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \"><strong>Is TTML a Tata Group company?<\/strong><\/h5><p class=\"saswp-faq-answer-text\"><br>TTML is a Tata Group company that offers services under the Tata Tele Business Services brand name.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Tata Tele (Maharashtra) Limited (TTML), Tata Group&#8217;s telecom arm, offers a wide range of enterprise telecommunications services, both wired and wireless. <\/p>\n","protected":false},"author":5,"featured_media":46913,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[485],"tags":[],"class_list":["post-46912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis-of-stocks"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/46912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=46912"}],"version-history":[{"count":6,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/46912\/revisions"}],"predecessor-version":[{"id":47190,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/46912\/revisions\/47190"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/46913"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=46912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=46912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=46912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}