- MTNL was set up on 1st April, 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of India's key metros . :-
- MTNL has presence in Delhi, the political capital and Mumbai, the business capital of India. The Govt. of India currently holds 56.25% stake in the company.
- MTNL is the only listed company which has 3G services for its customers, other is BSNL which is yet to be listed and with auction for 3G again and again on delay, MTNL would be first to benefit as far as stock market performance is concerned.
- BSNL-MTNL merger is not confirmed by many officials but if BSNL public issue can't go through given employee dissastisfaction, government may have to merge MTNL-BSNL which would be a way for BSNL to come to stock market in the form of MTNL. Also both MTNL and BSNL are losing market shares to private telecom operators and to make matters better for them a merger would always be better than BSNL listing. MTNL just having Mumbai and Delhi circles is hampering the growth of the PSU and for growing ahead either they have to merge with BSNL or start operations in other cities as well.
- MTNL holds nearly Rs 5000Cr as cash in its books and trades at a gross discount to its book value Rs 190. Also it holds more than 1 lakh sq feet of land in Mumbai which it intends to develop as per market sources.
Technical View:-
MTNL CMP Rs 86 has started trading above all moving averages and is a strong buy at current levels. The stock shows nice bottoming formation and after breakout the stock can reach Rs 110 levels soon.
