New Delhi. Tata Teleservices Maharashtra is one such stock, which has gained 3,000 percent in the last one year and has given a rise of 12,800 percent in two years. You must be thinking that this is a great stock. But let us tell you that this stock has been running in loss for the last several years. The company is presenting the loss only in its report year after year. Stock market experts say that you should stay away from such stocks.
This share (TTML) of Tata Group has traveled from Rs 2.25 to Rs 290.15. Since December 24, yesterday (till Tuesday) this stock has given an upper circuit of 5 percent continuously. On Wednesday, there was a lower circuit of 5 percent in this stock and today the stock fell 5 percent and closed at Rs 275.65. Yesterday closed on Tuesday at 290.15.
Also read – Rakesh Jhunjhunwala withdraws money from this stock, was in recession for a long time!
Market capitalization higher than other Tata companies
After giving 13 consecutive upper circuits, its market capitalization has increased to ₹ 56,898 crore. You will be surprised to know that the market cap of the company which is continuously going in loss has exceeded other Tata companies like Tata Communications, Voltas, Trent, Tata Chemicals, Indian Hotels and Tata Alexi.
According to a report in Economic Times, Ambareesh Baliga, an independent analyst said, “It is strange that a company has been reporting a net loss for many years and did not even generate revenue to pay the interest and that company is 50% of the sales. Doing business more than times. He said- “The stock has been on the upper circuit for several days with many rumors in the social media, and surprisingly the management is silent.”
Also read – If you have a car then you should not miss this news, definitely read
this is its history
TTML, formerly known as Hughes Telecom, is a subsidiary of Tata Teleservices and was licensed to provide services in Maharashtra and Goa. Once it used to provide telecom services. Tata Tele holds 48.30 per cent stake in TTML, while Tata Sons and Tata Power hold 19.58 per cent and 6.48 per cent in the company.
The company has a lot of debt and has been battling recession since 2008. Japan’s largest telco company NTT DoCoMo sold its entire stake (26.5%) in 2018. Later in 2019, Tata Tele sold its consumer mobile business, including its assets, spectrum and liabilities, to Airtel.
Also read – Another big news about LIC IPO, revealed about the timing of IPO!
High loan interest, low turnover
The fundamentals of TTML are in a trend of falling revenue and increasing losses. The company showed a loss of Rs 2,000 crore in FY 2021. Talking about the last 10 years, the company has made a loss of Rs 21,300 crore. And listen, the interest the company is paying on its debt since 2019 is more than its turnover.
Although the company has reduced its losses in the last one year, but its debt increased to 19,700 crores by September 2021, which was 17,774 crores as of 31 March 2021.
Tags: Share market, Tata