There is an opportunity for short term gains in one of the Tata Group-backed stock which is trading below Rs 100. It is neither giants like TCS, Tata Steel or Tata Motors, but a midcap telecom stock, Tata Teleservices (Maharashtra) Ltd (TTML). On Monday, this telecom stock zoomed by at least 5% and neared Rs 85 level. There is room for further buying as Axis Securities sets a Rs 94 target with a time frame of 5-15 days.
Axis Securities On TTML:
The brokerage has added TTML to its positional equities pick which usually have a time-frame of 0-15 days for potential growth. The brokerage has recommended BUY on TTML for a target price of Rs 94, which signals a potential of nearly 14% from its current market price. The stop loss is suggested at Rs 81.50 apiece. While the entry price range in the stock is suggested to be Rs 83 to Rs 84.
TTML stock has corrected significantly over the year. As per the brokerage's data, the stock has underperformed the Nifty 500 by 35.34%, with a standard deviation of 1 year higher than the Nifty 500 by 2.25%. However, the brokerage's data also highlighted that MF shareholding in Tata Teleservices (Maharashtra) Ltd has increased by 39.38% in the past 1 Year.
Tata Teleservices Share Price:
After rising by 5% and hitting the Rs 84.39 target, TTML stock ended at Rs 82.79 apiece on BSE up by 3.09% with a market cap of Rs 16,184.85 crore. The stock's 52-week high and low are at Rs 111.48 apiece and Rs 65.29 apiece respectively. YTD, the stock has dipped by 9.4% on BSE. In a year, the downside is about 10%.
Among its key fundamentals, the positives for the stocks are Debt to Equity Ratio of -0.76 is less than 1 and healthy, which implies that its assets are financed mainly through equity; Mutual Fund Holding increased by 0.01% in the last quarter to 0.08; Promoter Pledges are zero, as per Trendlyne data,
However, as per the data, the drawbacks were -- Interest Coverage Ratio is 0.34, lesser than one, which means that it is unable to pay interest with its earnings (EBIT); Price to Earning Ratio is -12.74, which is negative; and Stock Price fell 10.55% and underperformed its sector by 71.11% in the past year among others.
About Tata Teleservices:
Tata Teleservices Limited along with its subsidiary, Tata Teleservices (Maharashtra) Limited, is a leading enabler of digital connectivity and cloud solutions to enterprises. It offers a comprehensive portfolio of ICT solutions for businesses in India under the brand name Tata Tele Business Services (TTBS). Its services range from connectivity, collaboration, cloud, SaaS, security, IoT, and a wide range of marketing solutions.
The company had a spin-off in July 2019, after it carried a bonus issue of 2:15 in August 2013. The company issued 2 additional bonus shares on the existing 15 shares. While before that Tata Teleservices had practiced Rights Issue of its equity shares.
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