Tag Telecom Sector

Vodafone Idea ltd
Vodafone Idea’s Revival Plan: Government Equity Boost vs Shareholder Value Erosion

Business and Industry Overview: 

Vodafone Group Plc is a multinational telecom firm based in the United Kingdom. Its global headquarters and registered office are located in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania. As of January 2025, Vodafone owns and operates networks in 15 countries, with partner networks in 46 further countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in 150 countries. Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. The company has a secondary listing on the NASDAQ as American depositary receipts (ADRs). 

India has one of the largest telecom markets in the world, with 1.2 billion telephone subscribers as of May 2024. The rural telecom sector is also growing, with 59.59% of rural areas now having phone connections. Mobile data usage has increased by more than 10 times in recent years. In FY18, total wireless data usage was 4,206 petabytes, which increased to 47,629 petabytes in Q2 FY24. India is also one of the biggest consumers of data in the world. As per TRAI, the average data usage per user was only 61 MB per month in 2014, but in December 2023, it reached 19.47 GB per month. 

There are many opportunities in the telecom sector. By 2026, India will have 350 million 5G users, which will be 27% of all mobile users. The country is also increasing its mobile phone exports. In FY24, exports of mobile phones grew by 42%, reaching $15.6 billion. The demand for skilled workers is also increasing. By 2025, India will need around 22 million workers in fields like 5G technology, artificial intelligence (AI), the Internet of Things (IoT), robotics, and cloud computing. India is also leading in internet usage worldwide. The country ranks 2nd in international mobile broadband internet traffic and international internet bandwidth. 

Vodafone India is the Indian subsidiary of the UK-based Vodafone Group. It provides telecommunications services in India and has its operational head office in Mumbai. The Vodafone Idea network has approximately 375 million subscribers and is the third-largest mobile telecommunications network in India. 

Currently, India is the world’s second-largest telecommunications market, with a total telephone subscriber base standing at 1,203.69 million and having registered strong growth in the last decade. The Indian mobile economy is growing rapidly and will contribute to India’s Gross Domestic Product (GDP), according to a report prepared by the GSM Association (GSMA) in collaboration with Boston Consulting Group (BCG). Vodafone Idea is one of the dominant players in the market, with an 18.19% market share.  

Latest Stock News: 

As of April 8, 2025, Vodafone Idea’s stock fell about 11.4% from ₹8.17 to ₹7.24 on NSE after an earlier rise driven by the government converting ₹36,950 crore of the company’s dues into equity, increasing its stake to 48.99%. SEBI allowed this without an open offer, treating the government as a public shareholder, to avoid financial strain and support the struggling telecom firm. Despite this relief, Vi continues to face challenges—JM Financial expects it lost 4.2 million low-paying users in Q4FY25, though its mobile broadband users may grow by 2 million. ARPU is projected to stay flat at ₹163, and revenue may decline 2.1% to ₹10,900 crore, with EBITDA also falling slightly. In contrast, Jio and Airtel are expected to gain 4 million and 3 million users, respectively, while Vi’s base may shrink to 197 million. Meanwhile, Vi confirmed to stock exchanges that no shares were dematerialised or rematerialised in the March 2025 quarter, with over 99.9999% of shares already in demat form. 

Potentials: 

Vodafone Idea is working hard to fix its problems and get more customers. It plans to improve its 4G network so people can enjoy faster internet and fewer call drops. The company also wants to launch 5G services, but it needs a lot of money to do that. Since Vodafone Idea has a huge debt, it will ask investors for money and take loans to pay what it owes. 

To stop customers from leaving, Vodafone Idea will offer better recharge plans and discounts and improve network quality. It will also expand its services for businesses, offering things like cloud storage, security solutions, and IoT (smart technology) services. The Indian government now owns a big part of Vodafone Idea and might help the company with its financial troubles. 

Vodafone Idea will focus on villages and small towns by offering cheaper mobile plans to attract more users. The company must raise enough money, keep its customers happy, and launch 5G soon if it wants to survive and compete with Reliance Jio and Airtel. 

Analyst Insights: 

  • Market capitalisation: ₹ 51,332 Cr. 
  • Current Price:  ₹ 7.19 
  • 52-Week High/Low: ₹ 19.2 / 6.60 
  • Dividend Yield: 0.00% 
  • Return on Capital Employed (ROCE): -3.61% 

Vodafone Idea has been consistently posting losses, with a net loss of ₹6,609 Cr in Q3 FY24 and negative EPS of ₹-0.95. The company holds a massive debt burden of over ₹2.5 lakh crore, and its book value stands at ₹-13.7, reflecting severe erosion of shareholder equity. While operating margins have improved to 42% and there has been a slight promoter holding increase of 1.48% in the recent quarter, the overall financial health remains weak — with negative profit growth (-56% over 5 years), low sales growth (3%), and negative ROCE (-3.61%). Compared to peers like Bharti Airtel, which are profitable and stable, Vodafone Idea remains a high-risk investment with no clear visibility of turnaround, making it unsuitable for long-term investors. 

Tejas Networks ltd
Tejas Networks Slips as IT-Hardware Sector Struggles with Market Headwinds

Business and Industry Overview: 

Tejas Networks is an Indian company that makes equipment for telecom and internet companies. It started in 2000. The company helps these companies provide fast and reliable internet. Tejas Networks works in over 75 countries, including places like Southeast Asia and Africa. One of its major projects is BharatNet. This project is focused on bringing high-speed internet to rural areas in India. Tejas Networks has helped connect over 40,000 villages in India. This has allowed millions of people in small towns and villages to use the internet. Tejas Networks also works with big companies like Tata and BSNL. They supply equipment for 4G and 5G networks. These products help make the internet faster and improve mobile services. The company has invented many new technologies and holds patents for them. Besides India, Tejas Networks is also working in other countries. For example, in Egypt, they are helping build better internet networks. The Indian government supports the company through a scheme that helps produce more local telecom equipment. Tejas Networks is growing fast, with help from investors like Tata Sons. They are working on big projects to improve India’s telecom networks, including 4G and 5G services. Tejas Networks is helping shape the future of telecom, both in India and around the world. 

India’s telecom industry has grown rapidly in recent years. As of May 2024, there are 1,203.69 million phone subscribers. Of these, 59.59% live in rural areas. This shows that more people in the countryside are using phones. India is also a huge user of data. The amount of data used has increased by over ten times in the last few years. In 2014, each person used just 61.66 MB of data each month. But by December 2023, this increased to 19.47 GB per month. This shows a big jump in data usage. India is one of the biggest data users in the world. The country’s wireless data usage is growing fast. The volume of data used reached 47,629 petabytes in 2024. In the future, India is expected to keep growing in mobile technology. By 2026, it is predicted that 350 million people will use 5G networks. This will make up 27% of all mobile subscriptions in India. The export of mobile phones from India is also increasing. In FY24, India exported US$ 15.6 billion worth of phones, a 42% rise. This shows how much demand there is for Indian-made phones. India’s telecom industry also needs skilled workers. By 2025, the country will need about 22 million skilled workers. These workers will need knowledge in fields like Artificial Intelligence, robotics, and cloud computing. India is also doing well in global internet traffic. The country ranks second in international mobile broadband traffic and internet bandwidth. This shows that India is a leader in global internet use. The government is supporting the telecom industry. In 2024-25, the government allocated Rs. 116,342 crore (US$ 13.98 billion) for telecom improvements. The government also approved Rs. 4,115 crore (US$ 502.95 million) for 42 companies to help grow the sector. There has been a lot of foreign investment in India’s telecom industry. From 2000 to 2024, foreign companies invested US$ 39.32 billion in the sector. This has helped the industry grow even more. Telecom companies like Jio, Airtel, and Vodafone Idea are expanding their services. They are especially focused on providing better service to rural areas. The government is working on projects to improve internet and mobile services. One of these projects is BharatNet, which is helping provide broadband to remote areas. The government is also planning to develop 6G technology. This will help India stay ahead in the telecom industry.  In conclusion, India’s telecom sector is growing rapidly. The future looks bright with more people using mobile phones, more data usage, and government support. Competitive positioning is how a company makes itself stand out from others. It tells customers why they should choose that company over others. Companies do this in many ways. Some focus on having the lowest prices. This attracts customers who want to save money. Other companies focus on quality. They offer better products to attract people who want high-end items. Some companies offer unique features. For example, a phone company may have a special camera that other phones don’t have. Certain companies target specific groups. A luxury brand may focus on wealthy customers who want expensive items. A budget brand, on the other hand, may offer cheaper products for people with limited money. Some companies keep creating new things. They focus on innovation to stay ahead of competitors. They offer the newest products and ideas. This helps attract customers who like new trends. In simple terms, competitive positioning is about showing customers why they should pick one company over another. It’s about offering something special that others don’t. This could be price, quality, unique features, or innovation. 

Latest Stock News: 

Tejas Networks, a Tata Group company, has made big progress in the telecom industry. In October 2024, the company shared its financial results for Q2 of FY25. They showed great growth. The company’s revenue increased by six times, reaching ₹2,811 crore. This was much higher than ₹396 crore in the same period last year. They also made a profit of ₹275 crore. This is a big change from the ₹13 crore loss in Q2 of FY24. The growth happened because Tejas Networks sent a lot of 4G/5G equipment to BSNL. BSNL is expanding its network across India. Tejas delivered equipment to over 58,000 sites and got more orders to improve 4G sites in some areas. 

In August 2024, Tejas Networks got a big order worth ₹7,492 crore from Tata Consultancy Services (TCS). The order is to supply 4G/5G equipment to about 100,000 BSNL sites. This is part of a larger contract to provide, support, and maintain Radio Access Network (RAN) equipment for BSNL’s 4G/5G network across India. This order has helped Tejas Networks become stronger in the telecom market. 

Because of these good results, Tejas Networks’ stock price went up. After they announced strong results in October 2024, the stock price increased by 20%. It reached ₹1,427.55, which was the highest in the last three months. Over the last four years, the stock has grown a lot. It increased by 1,421%, going from ₹90 per share to ₹1,369. 

On March 22, 2025, Tejas Networks told the stock exchanges (NSE and BSE) that they gave 2,62,854 equity shares to their employees. These shares were part of the company’s Stock Option Plans. Employees who exercised their stock options got these shares. Here is the breakdown of the shares: 

Tejas Networks Limited Employees Stock Option Plan 2014: 1,500 shares 
Tejas Networks Limited Employees Stock Option Plan 2014 – A: 52,426 shares 
Tejas Networks Limited Employees Stock Option Plan 2016: 83,337 shares 
Tejas Networks Limited Employees Stock Option Plan 2016: 7,500 shares 
Tejas Restricted Stock Unit Plan 2017: 68,430 shares 
Tejas Restricted Stock Unit Plan 2022: 49,661 shares 
 

Because of this, the company’s paid-up share capital increased. It is now ₹1,76,32,24,400. This is divided into 17,63,22,440 equity shares of ₹10 each. Before the allotment, the paid-up share capital was ₹1,76,05,95,860, divided into 17,60,59,586 shares of ₹10 each. 

Also, on March 12, 2025, Tejas Networks received ₹123.45 crore from the Ministry of Communications. This amount is an incentive under the Production Linked Incentive (PLI) scheme for Telecom and Networking Products. The PLI scheme is a government program to encourage the production of telecom products in India. The incentive is for the financial year 2023-24. This will help Tejas Networks grow more in the Indian telecom market. 

Potentials: 

Tejas Networks has plans to grow and improve. They will spend more money on research to make better products. This will help them stay ahead of other companies. They want to focus on new technologies for 5G and 6G networks, which will be important in the future. The company wants to expand into new countries where people need more telecom services. This will help them get more customers and sell more products. They also want to improve their wireless products, like 4G and 5 G. Better wireless technology will help telecom companies give faster and more reliable services. Tejas Networks may work with other companies to get stronger. Working together will help them make better products and enter new markets. They also want to keep providing services to the government and defence sectors. These contracts can give them a stable income over time. Finally, Tejas Networks wants to make its products more eco-friendly. They aim to make products that use less energy and cause less harm to the environment. This will help them attract customers who care about the environment. 

Analyst Insights: 

  • Market capitalisation: ₹ 13,670 Cr. 
  • Current Price: ₹ 777 
  • 52-Week High/Low: ₹ 1,495 / 647 
  • Stock P/E: 20.6 
  • Dividend Yield: 0.00% 
  • Return on Capital Employed (ROCE): 3.68% 
  • Return on Equity (ROE): 2.06% 

Tejas Networks is currently facing several challenges that may concern investors. One key issue is its low return on equity (ROE) and return on capital employed (ROCE), which indicates that the company is not generating strong returns from the capital it is using. ROE is only 2.06%, and ROCE is 3.68%, which are both relatively low compared to industry standards. This suggests that the company is not using its money efficiently to generate profits. Another issue is the company’s long debtor days (208 days), meaning it takes a long time to collect payments from its customers. This can put a strain on its cash flow, making it harder for the company to fund operations or invest in growth. The stock is currently trading at a price that is 3.67 times its book value, which is a bit high for a company that is not showing strong profits. This could indicate that the stock is overvalued, especially since the company is not generating good returns. Additionally, Tejas Networks has been reporting negative cash flow from operations, which is another red flag. Negative cash flow means that the company is spending more money than it is earning, which could eventually lead to financial problems if it continues over time. Lastly, the promoters’ holding in the company has decreased by 1.41% in the last quarter, which could signal a lack of confidence in the company’s future performance. Given these concerns—low returns, high stock price, long collection times, and negative cash flow—it may be risky to invest in Tejas Networks at this time. 

Vodafone Idea Ltd
Vodafone Idea Seeks Government Aid: Requests More Dues to Be Converted into Equity

Business and Industry Overview: 

Vodafone Group Plc is a multinational telecom firm based in the United Kingdom. Its global headquarters and registered office are located in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania. As of January 2025, Vodafone owns and operates networks in 15 countries, with partner networks in 46 further countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in 150 countries. Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. The company has a secondary listing on the NASDAQ as American depositary receipts (ADRs). 

India has one of the largest telecom markets in the world, with 1.2 billion telephone subscribers as of May 2024. The rural telecom sector is also growing, with 59.59% of rural areas now having phone connections. Mobile data usage has increased by more than 10 times in recent years. In FY18, total wireless data usage was 4,206 petabytes, which increased to 47,629 petabytes in Q2 FY24. India is also one of the biggest consumers of data in the world. As per TRAI, the average data usage per user was only 61 MB per month in 2014, but in December 2023, it reached 19.47 GB per month. 

There are many opportunities in the telecom sector. By 2026, India will have 350 million 5G users, which will be 27% of all mobile users. The country is also increasing its mobile phone exports. In FY24, exports of mobile phones grew by 42%, reaching $15.6 billion. The demand for skilled workers is also increasing. By 2025, India will need around 22 million workers in fields like 5G technology, artificial intelligence (AI), the Internet of Things (IoT), robotics, and cloud computing. India is also leading in internet usage worldwide. The country ranks 2nd in international mobile broadband internet traffic and international internet bandwidth. 

Vodafone India is the Indian subsidiary of the UK-based Vodafone Group. It provides telecommunications services in India and has its operational head office in Mumbai. The Vodafone Idea network has approximately 375 million subscribers and is the third-largest mobile telecommunications network in India. 

Currently, India is the world’s second-largest telecommunications market, with a total telephone subscriber base standing at 1,203.69 million and having registered strong growth in the last decade. The Indian mobile economy is growing rapidly and will contribute to India’s Gross Domestic Product (GDP), according to a report prepared by the GSM Association (GSMA) in collaboration with Boston Consulting Group (BCG). Vodafone Idea is one of the dominant players in the market, with an 18.19% market share.  

Latest Stock News: 

The Indian government plans to remove a fee called Spectrum Usage Charges (SUC) for telecom companies. This fee is a percentage of their earnings. It increases the cost for companies. Removing this fee will help telecom companies save money. They can use the saved money to expand 5G services and improve networks.   

Right now, telecom companies pay SUC at a rate of 3-4% of their earnings. They also pay an 8% license fee to the government. This license fee includes a 5% payment to a government fund for telecom services. In June 2022, the government removed SUC for airwaves bought after September 15, 2021. But companies that purchased airwaves before 2021 still had to pay this fee. Now, the government is planning to remove this fee for them as well. This will give telecom companies relief worth thousands of crores.   

Vodafone Idea will get the biggest benefit. The company has a huge debt of over ₹2 lakh crore. With this waiver, Vodafone Idea may save around ₹8,000 crore. This will help the company manage its financial problems. The government believes that telecom companies already paid a fair price for airwaves in past auctions. So, charging an extra fee is not needed. The government may approve this decision soon. This will help telecom companies lower their costs. It will also allow them to improve services for customers. 

Vodafone Idea Ltd.’s stock has declined 3.67% today, closing at ₹7.34, and remains significantly below its 52-week high of ₹19.15. Despite the recent SUC waiver, financial concerns persist with ₹2.5 lakh crore debt, Q3 losses of ₹6,986 crore, and continued subscriber attrition. The stock has seen a 43% YoY drop, reflecting weak investor confidence. While the trading volume remains high at 103 million shares, the lack of a clear roadmap for fundraising and 5G expansion limits long-term upside.  

Potentials: 

Vodafone Idea is working hard to fix its problems and get more customers. It plans to improve its 4G network so people can enjoy faster internet and fewer call drops. The company also wants to launch 5G services, but it needs a lot of money to do that. Since Vodafone Idea has a huge debt, it will ask investors for money and take loans to pay what it owes. 

To stop customers from leaving, Vodafone Idea will offer better recharge plans and discounts and improve network quality. It will also expand its services for businesses, offering things like cloud storage, security solutions, and IoT (smart technology) services. The Indian government now owns a big part of Vodafone Idea and might help the company with its financial troubles. 

Vodafone Idea will focus on villages and small towns by offering cheaper mobile plans to attract more users. The company must raise enough money, keep its customers happy, and launch 5G soon if it wants to survive and compete with Reliance Jio and Airtel. 

Analyst Insights: 

  • Market capitalisation:₹ 52,402 Cr. 
  • Current Price:₹ 7.34 
  • 52-Week High/Low: ₹ 19.2 / 6.60 
  • Dividend Yield: 0.00% 
  • Return on Capital Employed (ROCE): -3.61% 

The recent SUC (Spectrum Usage Charges) waiver provides some relief to Vodafone Idea Ltd., reducing its cost burden and improving operational cash flow. However, the company still faces a massive debt of ₹2.5 lakh crore, persistent losses (₹6,986 crore in Q3 FY24), and negative book value (-₹13.7 per share). While the SUC waiver slightly eases financial pressure, VIL’s weak revenue growth (2.83% CAGR over five years), declining subscriber base, and intense competition from Reliance Jio and Bharti Airtel limit upside potential. The stock has dropped 43% YoY, and promoter holding has declined to 33.2%, indicating weak confidence. Given these mixed signals, it’s better to sell or hold a little longer to see the market reaction, waiting for further clarity on fundraising and 5G rollout before making a decisive call. 

MTNL Ltd
MTNL Shares Soar 18% as ₹2,135 Crore Asset Monetization Boosts Growth

Business and Industry Overview: 

MTNL is a phone and internet company owned by the Indian government. It provides services in Delhi and Mumbai. The government started MTNL in 1986 to help people talk on the phone and use the Internet. It provides landline phones, mobile networks, broadband, and fibre internet. Many people used MTNL for calling and internet before. 

Later, new companies like Jio, Airtel, and Vodafone came. They gave faster Internet, better service, and lower prices. Many people left MTNL and started using these private companies. MTNL lost many customers and started losing money. The company also owes a lot of money. It spends too much on employee salaries and fixing old networks. Other companies upgraded their internet to 4G and 5G, but MTNL could not. Its Internet became slow and outdated. More people stopped using it. 

The government is helping MTNL so it does not shut down. It gives money to keep it running. The government also wants to merge MTNL with another government company called BSNL. BSNL works in other parts of India except for Delhi and Mumbai. By joining both companies, the government wants to reduce money loss and improve services. This will help MTNL upgrade to faster networks like 4G and 5G. 

But MTNL still has big problems. It has too much debt. It has fewer customers. Its technology is old. Many people have already left, and it is hard to bring them back. The government is trying to fix these problems. If MTNL gets better Internet, lower prices, and better service, more people may start using it again. 

India has one of the largest telecom markets in the world, with 1.2 billion telephone subscribers as of May 2024. The rural telecom sector is also growing, with 59.59% of rural areas now having phone connections. Mobile data usage has increased by more than 10 times in recent years. In FY18, total wireless data usage was 4,206 petabytes, which increased to 47,629 petabytes in Q2 FY24. India is also one of the biggest consumers of data in the world. As per TRAI, the average data usage per user was only 61 MB per month in 2014, but in December 2023, it reached 19.47 GB per month. 

There are many opportunities in the telecom sector. By 2026, India will have 350 million 5G users, which will be 27% of all mobile users. The country is also increasing its mobile phone exports. In FY24, exports of mobile phones grew by 42%, reaching $15.6 billion. The demand for skilled workers is also increasing. By 2025, India will need around 22 million workers in fields like 5G technology, artificial intelligence (AI), the Internet of Things (IoT), robotics, and cloud computing. India is also leading in internet usage worldwide. The country ranks 2nd in international mobile broadband internet traffic and international internet bandwidth. 

Broadband is supporting the telecom industry with huge investments and policies. The Production-Linked Incentive (PLI) scheme for telecom and networking products has a budget of ₹12,195 crore ($1.65 billion). Under this scheme, 42 companies have already committed investments worth ₹4,115 crore ($502.95 million). The government is also focusing on 6G technology and has set up a special 6G Innovation Group to develop new telecom solutions. 

Investments in the telecom sector are also rising. In the Union Budget 2024-25, the Department of Telecommunications and IT received ₹116,342 crore ($13.98 billion). Foreign investors are also interested in India’s telecom sector. Since April 2000, the total FDI in telecom has reached $39.32 billion. The PLI scheme for large-scale electronics manufacturing has received an investment of ₹4,700 crore ($569.49 million) as of September 2022. 

India’s telecom market is growing in every area. The wireless subscriber base reached 1.168 billion in May 2024. The top telecom companies are Reliance Jio (474.61 million users), Bharti Airtel (387.76 million users), Vodafone Idea (218.15 million users), and BSNL (86.32 million users). Wired broadband is also expanding, with 41.31 million subscriptions as of May 2024. Total wireless data consumption is rising fast. In December 2023, total data usage was 50,00,047 GB, and 5G data usage alone was 6,239 PB from April to December 2023. The total revenue of the telecom sector in FY24 was ₹2.4 lakh crore ($29 billion). 

India’s telecom sector will continue to grow. Cheaper data and more mobile phones will add 500 million new Internet users in the next five years. The government is working on projects like BharatNet to provide better internet in rural areas. The country is also preparing for 6G and investing in new telecom technologies. With more users, faster internet, and new policies, India’s telecom sector will become even stronger. 

Reliance Jio and Airtel are the biggest telecom companies in India. Jio has the most users because it gives cheap data and fast 5G. Airtel is known for good network quality and premium services. Vodafone Idea (Vi) is facing problems because it has fewer customers and less money to improve services. BSNL is a government company that mainly works in villages but has old technology. Jio is growing fast with new services like JioFiber and JioCinema. Airtel is also strong in business services. Vi is losing customers, and BSNL is slow in upgrading. Now, Jio and Airtel are leading the market. 

Latest Stock News: 

MTNL’s share price increased by 13.72% on March 13, 2025, reaching ₹49.29 per share. The rise happened after the government shared data about MTNL and BSNL earning ₹12,984.86 crore by selling extra land, buildings, towers, and fiber since 2019. This was revealed in Parliament on March 12, 2025. Minister of State for Communications Pemmasani Chandra Sekhar said that MTNL and BSNL are selling only those assets that are not needed for their operations in the future. They also have the right to transfer ownership of these assets. 

MTNL earned ₹2,134.61 crore by selling land and buildings. BSNL earned ₹2,387.82 crore from the same. MTNL also earned ₹258.25 crore by selling towers and fiber. BSNL earned ₹8,204.18 crore from selling towers and fiber until January 2025. The total revenue from asset sales by both companies reached ₹12,984.86 crore. 

After this news, MTNL’s share price surged further in early trade on March 13, 2025. The stock jumped by 18.4% and touched ₹51.30 per share on the BSE. Investors reacted positively to the revenue details, leading to strong buying in MTNL shares. 

MTNL took a loan by selling bonds and promised to pay interest every six months. The next interest payment is due on March 24, 2025, and MTNL was supposed to put the money in a special account 10 days before the due date. But MTNL does not have enough money right now, so they did not put the money in the account. However, the Government of India has promised to pay if MTNL cannot, so if MTNL does not pay, the people in charge will ask the government to step in and pay. This update is to inform everyone that MTNL is having money problems, but bondholders will still get paid because of the government’s guarantee. 

Potentials:

MTNL wants to grow and become better. It has signed a 10-year deal with BSNL to improve its services. The company will sell its shares in two other companies and close one of its smaller businesses. This will help MTNL focus on its main work. The government has made a plan to help MTNL and BSNL. They will start 4G services, spend less money, and sell land and buildings they do not need. MTNL and BSNL will also merge into one big company. The government wants to get ₹16,000 crore by selling some of MTNL and BSNL’s things. Important government offices have already said yes to this plan. They are now waiting for the final approval. When everything is done, MTNL will have less debt and more money to give better telecom services to people. 

Analyst Insights:

  • Market capitalisation:₹ 3,079 Cr. 
  • Current Price:₹ 48.9 
  • 52-Week High/Low: ₹ 102 / 31.2 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): -8.18 % 

MTNL is a company that provides phone and internet services, but it has been losing money for a long time. In the last three months, it lost ₹836 crore, and its earnings have fallen a lot over the past 10 years. The company has a huge debt of ₹31,203 crore and is struggling to even pay the interest on its loans. It has a negative value, meaning if you add up all its assets and debts, it owes more than it owns. Even though its stock price went up 47% this year, this is not because the company is doing well but because some investors are just buying it for short-term gains. The company is also far behind strong competitors like Jio and Airtel, and it only survives because the government helps it. Since it keeps losing money, has no real growth, and is in deep debt, it is too risky to invest in. It is better to sell the stock now instead of hoping for a recovery. 

Tata Communications Ltd
Tata Communications Stock Hits 52-Week Low- Market Challenges & Future Growth Outlook

Business and Industry Overview

Tata Communications, initially known as Videsh Sanchar Nigam Limited, was a government-owned telecommunication company. It was started on March 19, 1986, as VSNL. In 2002, the Indian government sold 25% of its shares, and Tata took control of the company. Tata Communications helps businesses around the world with digital services like the internet, cloud storage, mobile connections, and security. It works with 7,000 companies, including 300 of the world’s biggest businesses (Fortune 500). The company plays a big role in global internet traffic. It handles 30% of the world’s internet data, connects 80% of cloud service providers, and serves 4 out of 5 mobile users worldwide. It owns the largest underwater internet cable network, linking 190+ countries. In India, it is building the biggest Internet of Things (IoT) network, which will reach 2,000 communities and impact 400 million people. Tata Communications is listed on India’s two major stock exchanges (BSE and NSE). For over 25 years, it has helped India’s digital growth. In 2021, the company made ₹17,100 crore in revenue. The company provides network services and software-defined network platforms, such as Ethernet, SD-WAN, content delivery networks (CDNs), the internet, Multiprotocol Label Switching (MPLS), and private lines. 

India has the second-largest telecom market in the world. The number of mobile and internet users is growing fast. As of May 2024, India had 1,168.95 million mobile users. The number of home and office internet users was 41.31 million. By December 2023, India used a huge amount of internet data (50 million TB). Mobile internet usage increased 4% from September to December 2023. Most people used 4G (86.66%) and 5G (12.59%), while 2G and 3G were used very little. The telecom industry made ₹2.4 lakh crore (US$ 29 billion) in 2024. In the next five years, as mobile internet becomes cheaper, 500 million more people in India will start using the internet, creating new business opportunities. As of February 2025, Tata Communications has a market cap of ₹423.59 billion. Its market share has decreased over the past few years, but it still is a big player in the market. 

Latest Stock News

Tata Communications’ stock hit a new 52-week low, showing struggles in the telecom sector. The stock has been falling for the past two days and has dropped a lot over the past year. It is also performing worse than the overall market and is trading below important price levels. 

In Q3 FY25, the company made a profit of ₹131.7 crore, compared to a loss of ₹27 crore in Q3 FY24. The company said that higher digital revenue and better profit margins helped it recover. It also sold its stake in TCPSL to TSI India as part of a review of non-core businesses. 

Management reported a 50% increase in large business deals compared to last year and strong order growth. They expect Q4 to show good revenue growth. However, despite this, Tata Communications’ stock has dropped 12.5% this year due to overall market weakness. 

Potentials

Tata Communications is a leading telecom and digital services provider with operations in 190+ countries. It is partnering with AI company CoRover.ai to expand its digital solutions for businesses and government departments. They will use Tata Communications’ cloud technology and CoRover.ai’s AI solutions to create smart digital services. Sovereign AI means a country developing its own AI using its own data, infrastructure, and workforce. This partnership will help protect local data and follow government rules, especially with India’s new Digital Personal Data Protection (DPDP) Act. Many companies now prefer Indian-made data storage and management solutions to stay legally compliant. Tata Communications is already in talks with the central and state governments to use these AI solutions. Some projects are in a testing phase and will soon expand. The partnership will develop AI-powered applications for the public and businesses, improving services like e-governance, digital infrastructure, and business operations (such as inventory management).The AI solutions will support text, voice, and video in 14 Indian languages, including Hinglish. This will make technology more accessible to a larger population. 

The company’s stock price is very high compared to its actual worth, making it expensive for new investors. Its sales growth has been quite slow over the past five years, which is a concern. Additionally, it has a large amount of future financial obligations (₹13,916 crore in liabilities), and there are signs that it might be adjusting its financial numbers to make profits look better. However, the company has been highly profitable, showing a strong return on equity of 126% over three years, and it maintains a good dividend payout of 40.8%, rewarding its investors. While it offers good returns, its high price, slow growth, and financial risks make it a bit risky for new investments. 

Analyst Insights: 

Key Financial 

  • Revenue: ₹5,798 crore (Total money the company earned). 
  • PE Ratio: 37.1, meaning the stock is expensive compared to its profits. 
  • Market Value: ₹41,329 crore, showing it is a big company in telecom. 
  • Return on Equity (ROE): 126% (last 3 years), showing strong profit-making ability. 

Tata Communications is a strong company with good profits and big plans for AI, cloud, and digital solutions. But slow sales growth, high stock price, and financial risks are concerns. The stock looks expensive, and it has not performed well in the market recently. 

If you already own the stock, keep it for now but watch its performance.New investors should wait for a better price before buying. The company has good future potential, but right now, it may not be the best time to invest. 

ITI-Limited-Company-Overview
ITI Limited: Company Overview, Financial Analysis, and Investment Insights

ITI Limited: Overview 

ITI Limited specializes in manufacturing, trading, and servicing telecommunication equipment, along with offering associated and ancillary services. Its primary revenue streams include turnkey projects (78%), service offerings (19%), and manufacturing/trading (3%). Major projects under the turnkey segment include BharatNet, ASCON, and e-governance initiatives, with notable clients such as BSNL, MTNL, and Indian Defense Services. The company’s service offerings encompass contract manufacturing, equipment testing, and IT solutions, while its product range includes energy meters, rugged telephones for defense, Wi-Fi equipment, and solar panels. ITI maintains strong ties with government agencies, PSUs, and state governments, which accounted for 76% of its FY20 revenues. With an order book of ₹12,000 crores, including BharatNet Phase 2 and ASCON Phase 4, the company is executing large-scale projects worth ₹4,800 crores and₹7,800 crores, respectively. Backed by a ₹4,150 crore government-approved revival plan, ITI has received substantial equity and grants to support its operations and new projects. 

Latest Stock News (6 Jan 2025)

Past two trading sessions the stock surged with upper circuit with high volumes showed a great signs earlier but on January 07, 2025 stock suddenly hit the lower circuit of 10%, sensing the quick profit booking and a case of pump and dump situation creating a panic situation for investors and worrying about the stock’s future. But, the company clarified to public that there was no manipulation from their side and it random abnormal trade happened in stock. 

Shareholding Pattern as on September 2024 

Key Stats 

Market Cap ₹47048 Crore 
Revenue ₹2396 Crore 
Profit ₹-474 Crore 
ROCE -8.43% 
P/E – 

Peer Comparison 

Amt in ₹ Cr MCap Sales PAT ROCE Asset Turn. EV/EBITDA D/E P/E 
ITI Ltd 47048 2396 -474 -8.43% 0.13 -258 1.07 – 
Astra Microwave 7454 969 130 18.7% 0.72 32.03 0.31 57.1 
Avantel 3655 229 62 47.5% 1.19 38.3 0.08 59.3 
BEML Ltd 15959 4054 286 15.25% 0.76 32.9 0.24 55.9 

Financial Trends 

Amount in ₹ Cr 2020 2021 2022 2023 2024 
Revenue 2059 2362 1861 1395 1264 
Expenses 1914 2313 1753 1549 1582 
EBITDA 144 50 107 -154 -318 
OPM 7% 2% 6% -11% -25% 
Other Income 184 161 255 53 43 
Net Profit 146 9 119 -360 -569 
NPM 7.1% 0.4% 6.4% -25.8% -45.0% 
EPS 1.58 0.1 1.27 -3.79 -5.92 

Stock Price Analysis 

In terms of performance, ITI has shown a return of -9.99% in one day, 33.15% over the past month, and 109.49% in the last three months. Over the past 52 weeks, the shares have seen a low of ₹210.2 and a high of ₹548.7. The stock has experienced fluctuations today, with a low of ₹491.25 and a high of ₹592.85, The volatility is very high in this month which has also raised suspicion on company’s management for stock price manipulation, but is resolved now by the company.