At a Glance
Tata Teleservices (Maharashtra) Ltd is the telecom penny stock that every bull market resurrects. Despite no profits in 15+ years, and net worth so deep in negative it deserves its own excavation team, it remains a retail favourite — because “Tata hai boss.”
⚠️ 1. TL;DR – The Telecom Titanic That Still Floats
- 📉 5-Year Stock Move: ₹38 → ₹68 → ₹305 (2021 high) → back to ₹68
- 💀 Cumulative PAT (FY21–25): -₹6,160 Cr
- 📡 Core Business: Wireline + Managed IT/Telecom services in Maharashtra + Goa
- 🧾 Net Worth: -₹21,525 Cr 🤯
- 💳 Debt: ₹20,400 Cr (still rising)
- 🔥 ROCE: 50%+ (technical artifact, not operational excellence)
- 🧠 KMPs: CEO Ravinder Kumar, new CHRO Mridul Chandra (2025)
📡 2. Business Model – Death by Interest Expense
- Residual entity after Tata Group exited mobile telecom in FY19
- Tata Tele sold spectrum + mobile biz to Bharti Airtel; what’s left:
- Enterprise broadband
- Wireline voice
- ISP license in Maharashtra + Goa
But here’s the catch:
- Revenue has barely moved in 5 years.
- Interest expense is 5x operating profit.
- Still posts ₹300+ Cr quarterly losses, like clockwork.
📊 3. Financials – A Case Study in Balance Sheet Hell
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,044 | 1,094 | 1,106 | 1,192 | 1,308 |
| Net Profit (₹ Cr) | -1,997 | -1,215 | -1,145 | -1,228 | -1,275 |
| EPS (₹) | -10.2 | -6.2 | -5.9 | -6.3 | -6.5 |
| Operating Profit | ₹571 Cr | but… | |||
| Interest Paid | ₹1,694 Cr | 🧨 |
📉 Book Value: -₹100 per share
📉 Net Worth: NEGATIVE ₹21,525 Cr
💣 Debt: ₹20,416 Cr (FY25)
💡 That’s 15.6x revenue — you’d get better numbers from a mafia loan shark.
🚨 4. What’s Working (Surprisingly, Something)
✅ Positives
- 📈 OPM stable at 44–50% (enterprise business is sticky)
- 🔁 High renewal rates in B2B segment
- 🧘♂️ Survived AGR dues, Supreme Court verdict, Bharti sale, and still operational
- 💻 Trying to pivot to Managed Cloud + SaaS services
- 📊 Still commands ₹13,000+ Cr market cap — retail bhakts strong
❌ Negatives
- 💀 No profits in 15+ years
- 📉 No dividend history. Ever.
- 🤕 Debt > entire industry capex
- 🧾 Daily reminder: Net Worth = -₹21,525 Cr
📈 5. Shareholding – Tata Name Holding the Fort
| Shareholder | FY22 | FY25 |
|---|---|---|
| Promoters | 74.36% | 74.36% |
| FII | 2.3% | 2.5% |
| DII | 0.04% | 0.12% |
| Public | 23.3% | 23.0% |
- ✋ No dilution in recent years (yet)
- 💥 Retail base: 10.4 lakh shareholders as of Mar 2025
- 😇 Trust is the moat, not earnings
🎯 6. Fair Value Estimate – Oh Boy
We’ll attempt this, but only for satire’s sake.
Base Case (Fantasyland)
- Assume ₹1,500 Cr revenue, 20% net margin → PAT = ₹300 Cr
- P/E: 20x
- 🧮 FV = ₹6,000 Cr market cap → ~₹31/share
Reality Check
- Actual PAT = -₹1,275 Cr
- ❗ Theoretically zero or negative intrinsic value
🎯 EduInvesting FV Range (2025–26): ₹0 – ₹30
Current Price = ₹68. Pure momentum. Zero fundamentals.
🧠 7. Final Word – The Meme Stock with a TATA Sticker
TTML is the most respectable zombie stock on Indian markets.
- You wouldn’t touch Vodafone Idea, MTNL, or RComm — but TTML?
- “Tata group hai” – and that’s what’s holding up a ₹13,000 Cr illusion
💥 A perfect storm of:
- 📈 High OPM + 🧨 High debt = 😵💫 No profits
- 😇 Massive retail ownership = blind optimism
- 🚫 No dividend, no buyback, no turnaround… yet stock rallies every bull run
🧨 Verdict: If you’re betting on a Tata rescue package or delisting bonanza — good luck. Otherwise, this ship sank in 2018. We’re just dancing on the deck.
✍️ Written by Prashant | 📅 June 18, 2025
Tags: Tata Teleservices, TTML, Telecom Stocks, Penny Stocks India, Tata Group, Wireline India, PSU Telecom, AGR Dues, Delisting Rumors, Meme Stocks India
