This Tata Group stock has jumped nearly 2,000% in one year. Find out more

by 5paisa Research Team Last Updated: Dec 13, 2022 - 09:19 am 43.8k Views

Telecom operator Tata Teleservices (Maharashtra) Ltd hit an upper circuit for the 16th straight session on Tuesday, stretching its gains to almost 2,000% over the past one year.

Shares of TTML on Tuesday opened 5% higher—their maximum upper limit—at Rs 142.65 apiece on the BSE, stock-exchange data showed.

On Monday, the shares had closed at their all-time high Rs 135.90 apiece on the BSE, up 5% from the previous close. More than 1.4 million shares exchanged hands before the scrip froze for the day. However, volume dropped over 84% compared with its one-month daily average volume of over 10 million shares.

In the last one year, the stock has soared a whopping 1,967%. The stock had touched its low of Rs 6.90 apiece in early December 2020. TTML’s market capitalisation is now around Rs 27,887 crore, although it is still part of the BSE small-cap index.

In other words, this means that if an investor had parked Rs 1 lakh a year ago in TTML, the investment value would now stand around Rs 19.7 lakh before accounting for taxes.

Analysts say the stock has been on traders’ radar for the past few months and has attracted strong buying interest backed by a visible turnaround in its financial situation, fundamentals and technical parameters.

For the quarter ended September 2021, the company narrowed its losses to Rs 313.6 crore from Rs 341.1 crore in the corresponding period last year. Its total income increased 4.6% to Rs 271.33 crore.

The company also received a breather when the Department of Telecommunications (DoT) on October 14 announced relief measures for distressed telecom service providers.

The DoT granted Tata Tele an opportunity to opt for deferment of the adjusted gross revenue (AGR) dues by four years and paying interest amount by converting the same into equity. Tata Tele accepted the offer on October 29.

Since November 1, the trading session after the company announced its deferment plan, the stock has been touching its upper circuit limit.

While the stock has skyrocketed in the past one year, many technical analysts believe further upward price movement in the stock.

Vijay Dhanotiya, Lead - Technical Research, CapitalVia Global Research, believes there is more steam left in the stock and recommends a buy rating on the stock with a target price of Rs 172 per share.

“We can see that the stock has gained momentum from the support of the 200-day exponential moving averages line and is likely to continue its bullish sentiments,” Dhanotiya said in a client note. “Higher high candle formation on the daily and weekly charts also confirms that the rally will continue further.”

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