The stock hit a new high of Rs 264, and was locked at the 5 per cent upper limit. It has zoomed whopping 14,567 per cent from levels of Rs 1.80 in March 2020.
Tata Teleservices (Maharashtra) (TTML), the Tata Group telecom services company, has entered the list of top-100 most valued companies in terms of market captialisation in the country on the back of a strong rally. The stock hit a fresh record high at Rs 264 (up 5 per cent) and has rallied a whopping 567 per cent in the last three months.
As of 10 am, the stock was locked at the 5 per cent upper limit with volumes of 3.58 lakh shares on the BSE and pending buy orders for more than 8 lakh shares.
A sharp rally in the share price of TTML has seen the company’s market capitalisation (market-cap) cross the Rs 50,000 crore mark for the first time since its listing. At 09.46 am; with a market-cap of Rs 51,610 crore, TTML stood at 96th position in the overall market-cap ranking, the BSE data showed. From March 2020, the stock price of TTML has zoomed a mind-blowing 14,567 per cent from levels of Rs 1.80-odd levels.
Tata Communications, the other Tata Group company, has a market-cap of Rs 41,981 crore, while Vodafone Idea’s market-cap stands around Rs 44,109 crore, the data showed.
Tata Teleservices (TTSL), along-with its subsidiary TTML, is a growing market leader in the Enterprise space. It offers a comprehensive portfolio of voice, data and managed services to enterprises and carriers in the country under the brand name Tata Tele Business Services (TTBS).
The recent sharp rally in TTML can be attributed to the development, wherein TTML along with TISL on October 29, 2021, had informed Department of Telecommunication (DoT) about its decision to opt for deferment of Its Adjusted Gross Revenue (AGR) related dues by four years. It has also Informed DoT that decision of converting Interest amount in equity shall be conveyed within stipulated time limit of 90 days from DoT letter dated October 14, 2021.
Meanwhile, for first half (April-September) of the financial year 2021-22 (H1FY22), TTML had narrowed its net loss to Rs 632 crore from Rs 1,410 crore during the same period of FY21. However, the company’s current liabilities exceeded its current assets as on September 30, 2021.
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While announcing Q2 results on November 10, TTML said that it has obtained a support letter from its promoter indicating that the promoter will take necessary actions to organize for any shortfall in liquidity during the period of 12 months from the balance sheet date. “Based on the above, the company is confident of its ability to meet the funds requirement and to continue its business as a going concern,” TTML said.
TTML in FY21 annual report said that the company is projected to witness growth in the years to come on the basis of wide optical fiber network of around 132,000 kms. (TTSL+TTML), as the company has strong brand presence across customers in this business with deep customer relationships.
