1.Mahanagar Telephone Nigam Ltd is a 10 rupee face value government of India owned telecom company
recently government had approved
compensation of Rs.458.04 Crore to MTNL for surrender of 800 MHz CDMA spectrum
out of which Rs. 428.95 Crore has been sanctioned for disbursal vide DOT letter
dated March 28, 2016 and MTNL has received the amount in its account on March
30, 2016 so this is the reason why I choose this stock for pre result penny
share tip.
2. Year high of Mahanagar Telephone Nigam Ltd is 24.50 year low was 14.45 and stock traded at 18.10, Year high/ low ratio is below 2 so
I think price of this stock is stable for fresh buy .
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my blog and not familiar with my research terms then please see my research
terms at this link
3. Promoters of Mahanagar Telephone Nigam Ltd hold 57.03 % stocks Promoters holding is good with nil pledged stock ( MTNL is PSU Stock gove of india is promoter of this stock) See full list
of public shareholding including FII and DII here:-
4.Mahanagar Telephone Nigam Ltd MTNL not give any dividend after 2009 this is the reason that why I put
this call under my penny share blog instead of short term trading call or
multibagger call blog.
5. Base price of Mahanagar Telephone Nigam Ltd is 20.59 So Mahanagar Telephone Nigam Ltd still
traded 12.09 % below from base price.
6. No any bonus issue right issue and bulk deals is recorded in last 2 year.
Many of my followers ask that why I avoid a stock with bulk deals? See this bulk deal example in MTNL at 2006 when someone sell his 34 lac share of MTNL @ 194 see this example here:-
So when you compare 2006 price 194 with CMP 18.10 then you understand why I think bulk deal in sell side or bulk deal with large players is a sign of speculation and this will happen in more then 80% cases where price down within 1 year of bulk deal.
7. Mahanagar Telephone Nigam Ltd net sale per share of FyY14-15 is 53.96.
8.Net sale per share 53.96 is also good and MTNL is traded near 66.45% below from his net sale per share.
Please note that I knew that MTNL is a huge debt stock and continue posted huge loss in balance sheet so please do not ask this type of question in comments that why I give a call on this high debt loss making stock,
I posted this call because I think that we easily achieve our fundamental target price of 32.21 when government start to take step for BSNL IPO and merger with BSNL and MTNL and as I tell in point 2 that due to CDMA spectrum compensation this stock have possibility to turn arround from loss to profit.
9. Book value of Mahanagar Telephone Nigam Ltd is 32.82 So in book value term this stock is a value buy at CMP.
8. Overall I think MTNL may achieve his target 32.21 for
a long term view over 1 year read my book for more detail about how to
calculate fundamental target of a stock?
9. 200 DMA of Mahanagar Telephone Nigam Ltd is 18.46 So at CMP 18.10 Stock traded very closer to a positive breakout above 200 DMA , ( already
cross his 30 and 50 DMA on closing basis)
11. Disclaimer:- This is not
an advisory service to buy or sell. The contents of “this research report” are
only for educational purposes. No liability is accepted for any content in
“this research report”. The author is neither a registered stockbroker nor a
registered advisor and does not give investment advice. His comments are an
expression of opinion only and should not be construed in any manner whatsoever
as recommendations to buy or sell a stock, option, future, bond,
commodity, index or any other financial instrument at any time.The author
recommends that you consult with a qualified investment advisor, one licensed
by appropriate regulatory agencies in your legal jurisdiction, before making
any investment decisions. Please read
full disclaimer at the bottom of my blog.
12.Discloser:- I Mahesh
Chander Kaushik author of this research report is an existing research analyst
and passed NISM certification for research analysts. I am also registered under
SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH
100000908 ) hereby disclose about my financial interest in the subject company
and the nature of such financial interest:- 1 Me and my associates or relatives
have not hold any share of Mahanagar Telephone Nigam Ltd so my personal interest is not
included in this stock. 2. Me and my associates or relatives have not
any actual/beneficial ownership of one percent or more securities of the
subject company ( Mahanagar Telephone Nigam Ltd). 3. Me and my associates or relatives
have not any other material conflict of interest at the time of
publication of the research report. 4. Me and my associates or relatives have
not received any type of compensation
from the subject company(Mahanagar Telephone Nigam Ltd) in the past twelve months. 5. I am not
served as an officer, director or employee of the subject company ( Mahanagar Telephone Nigam Ltd). 6. I have been not engaged in
market making activity for the subject company (Mahanagar Telephone Nigam Ltd).
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