At a Glance
Once a proud three-way JV between TCIL, TIDCO, and Japan’s Fujikura, Tamil Nadu Telecommunications Ltd is now a cash-incinerating PSU relic with zero revenue, negative net worth, and no product in years. But hey, it’s up 101% YoY — because penny stocks with government tags are the new NFTs.
1. 🎬 Introduction – From Optical Fiber to Optical Illusion
- Incorporated in 1988 – pre-liberalization, pre-Jio, pre-common sense.
- Makes optical fiber cables… or at least used to.
- In reality, this is a shell of a company kept alive on life support by government associations and shareholder hopium.
- No revenue since FY18. No profits since forever. But stock has doubled in a year. 🙃
2. 🧵 WTF Do They Even Do?
- Original Business: Manufacture and supply of optical fiber cables (OFCs) for telecom infra projects.
- JV Partners:
- TCIL (Telecommunications Consultants India Ltd) – Central PSU under Ministry of Communications.
- TIDCO – Tamil Nadu’s industrial development body.
- Fujikura Ltd (Japan) – Top OFC player globally.
- In theory: Amazing.
- In practice: No cables, no customers, just cable TV-sized accounting errors.
3. 📉 Financials – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹0.00 Cr | ₹0.00 Cr | ₹0.00 Cr |
| Net Profit | -₹12 Cr | -₹15 Cr | -₹15 Cr |
| EPS | -₹2.62 | -₹3.20 | -₹3.39 |
| OPM | NA | NA | NA |
| ROE | NA | NA | NA |
📌 Literally no revenue for 7 straight years.
🧠 This is a financial blackhole. If you put ₹1 here, it vanishes from the face of Earth.
4. 🔥 Valuation – Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹20.1 |
| Market Cap | ₹90.4 Cr |
| P/E | NA (duh) |
| Book Value | -₹39.3 🤯 |
| P/B | NA |
| Dividend | 0% for 15+ years |
💸 FV Range? Let’s just say, if loss-making companies had a price tag, this one should be ₹1–₹3 max.
But in this PSU bubble, CMP = ₹20. Because why not.
5. 📢 What’s Cooking – News, Triggers, Drama
- ❌ No product, no sales, no operations.
- 🧾 Repeated audit warnings, including adverse opinions since FY23.
- 📉 Negative net worth consistently flagged in filings.
- 🤕 Rs. 34 Cr debt on a ₹0 revenue base.
- ✅ Only “positive” – government tag = retail speculation magnet.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹46 Cr |
| Reserves | -₹225 Cr ❌ |
| Borrowings | ₹34 Cr |
| Other Liabilities | ₹162 Cr |
| Total Liabilities | ₹17 Cr (post write-offs) |
| Fixed Assets | ₹7 Cr |
| Net Worth | -₹179 Cr |
🔴 Negative net worth.
🔴 Debt-ridden.
🔴 Zero working capital.
But yes, “Fiber optics” sounds sexy on a stock tips WhatsApp group.
7. 💸 Cash Flow – Sab Uparwale Bharose
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY24 | -₹1 Cr | ₹0 | ₹1 Cr | ₹0 |
| FY23 | -₹1 Cr | ₹0 | ₹1 Cr | ₹0 |
💀 Running on fumes. The company borrows just enough to survive another year of existence. Think zombie startup — but 1988 edition.
8. 🧮 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | NA |
| ROCE | NA |
| OPM | NA |
| Debtor Days | NA |
| Inventory Days | 33,945 in FY19 🤯 |
| Payable Days | 7 lakh+ in FY19 🤡 |
| EPS | -₹3.39 |
| P/B | Not Applicable (Book value is negative) |
🚨 This is the Bermuda Triangle of ratios. Everything goes missing — especially logic.
9. 📉 P&L Breakdown – Show Me the Carnage
| Year | Sales | Profit | EPS |
|---|---|---|---|
| FY23 | ₹0.00 Cr | -₹12 Cr | -₹2.62 |
| FY24 | ₹0.00 Cr | -₹15 Cr | -₹3.20 |
| FY25 | ₹0.00 Cr | -₹15 Cr | -₹3.39 |
There is no breakdown. Just break.
10. 🏁 Peer Comparison – Who Else is in the Game?
| Company | Sales (TTM) | PAT | CMP | Market Cap | ROE |
|---|---|---|---|---|---|
| Tejas Networks | ₹8,923 Cr | -₹71 Cr | ₹705 | ₹12,465 Cr | 12.8% |
| Valiant Comm. | ₹50.8 Cr | ₹4.2 Cr | ₹886 | ₹676 Cr | 16.9% |
| Birla Cable | ₹661 Cr | ₹5 Cr | ₹181 | ₹538 Cr | 1.99% |
| TNTELE | ₹0.00 Cr | -₹15 Cr | ₹20.1 | ₹90.4 Cr | NA |
🎪 You’re not buying a telecom infra stock. You’re buying the illusion of a telecom infra stock.
11. 🏛️ Misc – Shareholding, Promoters, and Ghosts
- Promoter Holding: 63.63% (stable since 2022)
- Public Holding: 24.5%
- No insider buying, no DII activity, FIIs exited in 2023.
- No board change, no restructuring attempts, no rescue plan.
🧟 This is a PSU with no pulse.
12. 🚩 EduInvesting Red Flags™
✅ Negative Net Worth
✅ No Sales Since FY18
✅ Repeated Adverse Audit Opinions
✅ Zero Operating Revenue for 7 Years
✅ EPS consistently negative
✅ Stock Price up 100% in 1 year purely on speculation
🤖 Operator Pump Suspected.
🐄 Retail Herd Approaching.
💣 Reversion to ₹5 possible at any moment.
13. 🧑⚖️ EduInvesting Verdict™
This stock is the equivalent of buying an old BSNL landline and expecting it to give 5G speeds.
🎭 Legacy JV? Yes.
🚢 Sinking ship? Absolutely.
🎲 Penny stock gambling potential? Sure.
📈 Fundamentally Investible? HAHAHAHA.
🎯 Fair Value Range: ₹0–₹3 (salvage value, assuming liquidation)
At ₹20+, this is pure madness — possibly operator-led or meme-fuelled.
Verdict: Bookmark for a finance museum. Don’t touch without gloves and stop-loss.
✍️ Written by Prashant | 📅 July 5, 2025
Tags: TNTELE, Tamil Nadu Telecommunications, PSU zombie stock, fiber cable, penny stock trap, optical illusion, EduInvesting
