TTML Share Price: All You Need to Know 

Tata Tele (Maharashtra) Limited (TTML), Tata Group’s telecom arm, offers a wide range of enterprise telecommunications services, both wired and wireless. It provides services under the name Tata Tele Business Services (TTBS).

Incorporated on March 13th, 1995, Hughes Ispat Limited secured essential telecom licenses to offer cellular services in the Maharashtra region. In December 2002, the company was acquired by Tata Group and renamed Tata Tele Maharashtra Limited. 

The company has been struggling to achieve growth due to rising competition. However, with Tata Sons infusing nearly ₹60,000 crore for debt payments in the past six years, could this become a turnaround stock? Let’s dive into the analysis of TTML share price.

What does TTML Do?

Operating under the Tata Tele Business Services (TTBS), it offers connectivity and communications solutions for businesses in Maharashtra and Goa. 

TTBS offers India’s businesses the most extensive information and communication technology (ICT) services, including connectivity, collaboration, cloud, security, IoT, and marketing solutions. 

The company also operated a consumer mobile business, partnering with Docomo and Tata Teleservices, but it later suspended operations due to unsustainable competition. On July 1, 2019, it sold its consumer mobile business to Bharti Airtel.

TTML Business Overview

The company has a fiber optic network of over 1.3 lakh KM, offering a comprehensive portfolio of smart digital solutions. It includes

• Cloud Infrastructure
• Cybersecurity Solutions
• Managed Services
• Business Communications
• Network & Connectivity
• Communication Suite for Collaboration & Productivity

TTBS primarily focuses on catering and empowering micro, small, and medium enterprises spanning various industries. 

TTML Management Team

Mr. Amur S. Lakshminarayanan is the TTML’s Chairman and a Tata Group veteran. And has also been MD & CEO of Tata Communications since November 2019. He is an engineering graduate from BITS Pilani. Before joining Tata Communication, he was President and CEO of TCS, Japan. 

Mr. Harjit Singh is the Managing Director and CEO of TTML and is responsible for the company’s growth and expansion as a leading digital service provider in the MSME category. He is also a Tata veteran and has been associated with companies such as Tata Housing, Tata AutoComp Systems, Tata Communication, and Neotel before joining TTML in 2019. 

Mr. Shinu Mathai is the Chief Financial Officer of TTML and joined the company in March 2004 and worked in various leadership roles. 

TTML Shareholding Pattern

The company’s shareholding pattern has not changed significantly over the last year, and no mutual funds have invested in it. 

TTML Financial Performance Review

Revenue From Operations

In the last four financial years, TTML’s revenue from operations has grown at a lower single digit of 3.37% annually. In FY24, the company posted ₹1,191.65 crore in revenue from operation, up from ₹1,106.7 crore in FY23. 

In Q1FY25, the company’s revenue from operations increased by 13.31% year-over-year to ₹323.50 crore from ₹285.51 crore in Q1FY24. 

EBITDA

The company’s EBITDA rose marginally in the last four years, from ₹500.3 crores in FY21 to ₹536 crores. The EBITDA margin is maintained at 45%. 

In Q1FY25, the company’s EBITDA was reported at ₹138.53 crores, up from ₹127.20 crores in Q1FY24.

Profit After Tax

Because of higher interest expenses, the company is reporting losses which are greater than its revenue.

The company reported a net loss of ₹323.40 crore in Q1 FY25, compared to a loss of  ₹301.18 crore in Q1 FY24.

TTML Key Financial Ratios

Current Ratio: The company’s ratio deteriorated in FY24 to 0.54 times from 0.64 times in FY23. 

Debt-to-equity Ratio: The debt-to-equity ratio has stayed constant at 1.04 times for the last two financial years. 

Interest Service Coverage Ratio: This metric measures the company’s ability to pay its debt interest costs. It has deteriorated to 0.80 times in FY24 from 0.85 times in FY25, indicating that the company is falling short of meeting interest costs in a financial year. 

Debt Service Coverage Ratio (DSCR): Similar to the interest service coverage ratio, this ratio indicates a company’s ability to repay debt. In FY24, DSCR was 0.08 times, improving marginally from 0.06 times in FY23. It suggests the company lacks enough financial means to repay its debt. 

TTML Share Price Analysis

The company has not created wealth for its investors. Tata Tele was listed on the stock market in October 2000, while its previous owner still owned it. The IPO’s issue price was ₹12. 

Because of the stiff competition in the telecom space following Jio’s arrival in 2016, TTML lost most of its market share due to the closure of its cellular operation, and its share price dropped to the level of a penny stock. However, it bounced back due to the strong performance of its enterprise business. 

TTML share price was trading at ₹2.70 on 14th October 2019 and made a high of ₹290 on 10th Jan 2022. It is currently trading around ₹80 level for quite some time now. 

The company has no history of paying dividends. In August 2013, the company issued bonus shares at a 2:15 ratio, which means that for every 15 shares held, shareholders received two bonus shares.

Tata Tele Maharashtra Limited- TTML Debt Position

TTML’s net debt was ₹19,954 crores at the end of FY24, up slightly from ₹19,825 crore at the end of FY23. 

The interest expenses in FY24 increased to ₹1,621 crores from ₹1,501 crore in FY23. 

	FY23	FY24
Total Borrowings (in ₹ cr)	₹19,825	₹19,954
Interest Expenses (in ₹ cr)	₹1,501	₹1,621

Despite its low debt-to-equity and interest service coverage ratio, TTML’s debt profile has been assigned a stable outlook by CARE Ratings. 

Tata Sons, its holding company, continues to provide strong financial support, which has resulted in a stable outlook. It has invested ₹46,595 crore in TATA Tele Business Services (TTBS) and continues to support the company.

Valuations Score

The valuation metric doesn’t apply to TTML because it is a loss-making company. Hence, the Price-to-Earnings (PE) Ratio cannot be calculated. With a negative net worth, the P/B Ratio is also negative. 

Market Cap to Sales

The company’s market cap-to-sales ratio is around 13 and is trading close to its 5-year median, which indicates that it is neither overvalued nor undervalued in these valuation metrics. 

However, it would help if you compared TTML share price with that of peer companies and analyzed the valuation metrics. 

Industry Outlook

India is the second-largest telecom market in the world, with a teledensity of 85.87% at the end of May 2024. According to IBEF, the total number of telephone subscribers stood at 1,203.69 million, and Wired broadband subscribers stood at 41.31 million.

The percentage of digital penetration in the MSME sector is still lower. According to a report by Redseer, India is home to about 64 million MSMEs, contributing 30% to the nation’s GDP. However, the current digital penetration among MSMEs is 12%, which opens up many opportunities for players like TTML. 

To make MSME more digitally empowered, the Government of India has launched the Digital MSME Scheme for the increased adoption of digital tools, applications, and technologies. The government will provide subsidies to MSME units for using cloud-based software,

All these factors can offer a considerable growth potential for TTML stock price. 

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