Smallcap stock sheds 10% after net loss widens to ₹839 crore in December quarter; time to sell? Globalindianews24

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MTNL Share Price Today: Shares of Mahanagar Telephone Nigam (MTNL) declined as much as 10 per cent to hit an intraday low of 38.89 apiece on the BSE, after announcing its October-December quarter results for fiscal 2023-24 (Q3FY24) earlier today.

The state-owned telecom company reported a consolidated net loss of 839.03 crore in the December quarter, compared to a net loss of 775.50 crore in the year-ago period. The net sales for the company declined 15.46 per cent to 192.24 crore in the December quarter, compared to 227.41 crore in the same period last year.

The total expense jumped 3.94 per cent year on year (YoY) to 1,174.79 crore in Q3 FY24. The license fees and spectrum charges stood at 16.39 crore, down 24.71 per cent YoY. On a sequential basis, MTNL’s net loss widened compared to 793 crore in the preceding September quarter.

Last year, MTNL had announced that it will seek shareholders’ approval to raise 3,126 crore through debt bonds against sovereign guarantee. MTNL said in its exchange filing, “the consent of shareholders is hereby sought for authorizing the board for issue of sovereign guarantee bonds of tenure of ten years or more amounting upto 3,126 crore by passing a Special Resolution. This resolution shall be valid for one year from the conclusion of this AGM.”
 

MTNL Share Price Today

On Tuesday, shares of MTNL opened at 43.01 and plunged 9.6 per cent to hit an intraday low of 38.89 against a 52-week low of 16.60 apiece on the BSE. Shares settled 9.93 per cent lower at 38.92 apiece on the BSE.

The government-backed telecom stock MTNL has spiked more than 30 per cent in January and looks appealing on the higher degree charts as well. Earlier this month, MTNL was also one of the stock picks for Interim Budget 2024 by a brokerage firm.

‘’The counter has surpassed the strong resistance zone around the 40-41 odd zone and looks poised for a rally beyond the 50 mark in the near term,” said domestic brokerage Angel One.

‘’Recently, this counter has been taking support around the 20 EMA on the weekly chart, which is now placed around the 32-33 odd zone. We anticipate that this outperformance will persist, and hence, we recommend buying this counter on dips towards Rs.41-38 for a near-term target of 52, with a stop loss at 32,” added Angel One.

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Published: 13 Feb 2024, 06:43 PM IST


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