STOCK WATCH: Tata Tele Maharashtra

Tata Teleservices Maharashtra Ltd (TTML) may be a good stock to keep an eye on. The stock has been on a downhill from its 52-week high of Rs 37 to current levels. On Monday, the stock closed at Rs 29.90 on trading volumes of 26,08,343 shares on the Bombay Stock Exchange.

The telecom service provider has been on a losing streak in anticipation of bad June quarter numbers which were declared on Saturday. The company posted a net loss of Rs 127.69 crore compared with a net loss of Rs 98.93 crore during the same quarter in the previous year.

The company's total income rose to Rs 239.96 crore during the quarter as against Rs 196.38 crore last year. Earnings before interest, depreciation and tax stood at Rs 9.97 crore compared with Rs 3.81 crore in the previous period.

The market has been hopeful of a merger of the company with the group flagship telecom company Tata Teleservices which offers CDMA-based mobile services in 20 telecom circles.

Korean telecom major, South Korea Telecom, is close to picking up a strategic stake in the company and is currently understood to be carrying out due diligence on Tata Teleservices.

While a merger could happen sooner than later, analysts expect the company to show better numbers in the coming quarter. According to technical analysts, the stock may be worth a shot.

The long-term prospects for the stock look good given the company's bright business prospects. At the current price of Rs 29, analysts recommend a buy on the stock.