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MTNL drops on profit booking

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Capital Market
Last Updated : Sep 26 2013 | 11:55 PM IST

MTNL lost 1.32% to Rs 16.40 at 09:40 IST on BSE on profit booking after advancing 22.84% in prior three trading days.

Meanwhile, the S&P BSE Sensex was up 52.65 points or 0.27% at 19,908.89

On BSE, 2.89 lakh shares were traded in the counter as against average daily volume of 6.66 lakh shares in the past one quarter.

The stock hit a high of Rs 16.99 and a low of Rs 16.11 so far during the day. The stock hit a record low of Rs 9.71 on 20 August 2013. The stock hit a 52-week high of Rs 40.40 on 26 September 2012.

The stock had outperformed the market over the past one month till 25 September 2013, surging 51.92% compared with the Sensex's 7.22% gain. The scrip, however, underperformed the market in past one quarter, declining 3.09% as against Sensex's 6.59% rise.

The small-cap company has an equity capital of Rs 630 crore. Face value per share is Rs 10.

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Shares of Mahanagar Telephone Nigam (MTNL) were on a roll recently, advancing 22.84% in three trading days to Rs 16.62 on 25 September 2013 from a recent low of Rs 13.53 on 20 September 2013. Gains caught momentum after the company after market hours on Tuesday, 24 September 2013 announced signing of a memorandum of understanding with BSNL for sharing network and infrastructure for greater operational synergy and single window customer delivery. This will result into greater synergy between the two organizations, MTNL said. BSNL operates mobile, fixed-line and Internet services in 20 of India's 22 telecommunications zones, while MTNL operates in the key Delhi and Mumbai zones.

MTNL reported a net loss of Rs 1256.19 crore in Q1 June 2013, higher than net loss of Rs 1059.29 crore in Q1 June 2012. Net sales rose 6.3% to Rs 883.16 crore in Q1 June 2013 over Q1 June 2012.

MTNL provides basic phone, internet and cellular mobile telephony services in Delhi and Mumbai. The Government of India (GoI) holds 56.25% stake in MTNL (as per the shareholding pattern as on 30 June 2013).

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First Published: Sep 26 2013 | 9:45 AM IST

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