Tata Teleservices Maharashtra Limited (TTML) offers telecommunication and internet services in Maharashtra and Goa.
TTML came into the limelight in 2019-20 when the stock surged nearly 1,500% in around 8 months period but became a wealth destroyer in the last couple of years.
In this article, we will examine the factors that influence TTML’s share price, analyze its financial performance, and consider the regulatory and technological aspects that shape its future prospects. So, let’s dive in and uncover TTML’s share price target.
TTML Share Price Target by 2025
At present, TTML’s share price is hovering around INR 65, which is a 55% decrease from the previous year’s highs at Rs 145.
Experts are expecting TTML’s share price to reach Rs 70-80 by 2025. However, it’s essential to keep in mind that market conditions and unexpected events can significantly impact a company’s stock price.
To determine the target price of TTML by 2025, you need to conduct both fundamental and technical analyses of the company. We have also analyzed another Tata stock for future price growth, you can go through Tata Power Share Price Target 2023 to 2025 for further details.
Fundamental Analysis of TTML Shares
Tata Teleservices’ financial health is not good so far. The company reported losses for these years.
TTML has kept on reducing its losses from Rs -3714 crores in 2019 to Rs -1145 crores in the last financial year which is a good sign.
On analyzing company fundamentals we understood that –
- TTML has been maintaining effective average operating margins of 28.77% in the last 5 years.
- The teleservice company has an efficient Cash Conversion Cycle of 21.79 days.
- It has a strong degree of Average Operating leverage at 11.04.
Operating leverage measures how sensitive a company’s profitability w.r.t. sales volumes. A company with high operating leverage means that a small increase in sales can lead to a larger increase in operating income. Because the company has fixed costs, such as rent, salaries, and equipment, that do not change with sales volume.
However, the company has shown a poor profit growth of -43.53% and a poor revenue growth of -5.04% for the last 3 years.
Technical Analysis of TTML Shares
The technical analysis of TTML reveals that earlier TTML shares were in the range-bound zone of Rs 60 to Rs 65 from April 2021.
The stock price broke the resistance level is Rs 65 on 4 May to reach Rs 70 and then fell again to reach the resistance level again. The shares are trading below the 200-day moving average of Rs 90 showing a bearish sign.
You can read our list of the best technical analysis software for the Indian stock market, to know more about the top technical analysis tools available in the market.
Factors Influencing TTML’s Share Price in 2025
#1. 5G Launch
In June 2022, Tata Teleservices made an exciting partnership with a Japanese chipmaker called Renesas Electronics Corp. Teaming up with Renesas in areas like automotive electronics, and current plus future telecom networks can lead to great opportunities. This collaboration will help us expand our presence in these areas not just in India but globally.
Because of these developments, you might feel optimistic about Tata Teleservices. They believe that the transition from 4G to 5G will bring positive outcomes for the company.
#2. Improved Financial Health
Tata Teleservices has been facing significant losses, but there has been a recent improvement.
In the financial year 2022, Tata Teleservices reported a loss of Rs 12,150 million, which is 39% lower than the previous year’s loss of Rs 19,967 million.
Additionally, the company has seen a notable increase in operating profits over the past four years.
#3. Tata Group Support
Tata Teleservices faced financial difficulties, but the Tata Group never gave up on them. They provided support by issuing a letter of support and infusing funds into the company.
To bring about a positive change, Tata Teleservices is implementing a turnaround strategy. It is being revived as Tata Tele Business Services (TTBS), presenting a new and refreshed approach.
The backing of the Tata Group has significantly enhanced the short-term growth prospects for Tata Teleservices, instilling optimism for its future.
#4. FII Investment
Another factor contributing to the positive outlook for Tata Teleservices could be the increased stake investment by Foreign Institutional Investors (FIIs).
When FIIs invest in a company, it is often seen as a positive sign for the company’s future prospects.
FIIs have been steadily increasing their stake in Tata Teleservices since September 2021. Initially, their stake was 0.01% in the quarter ending September 2021.
However, by the end of June 2022, their stake had risen to 2.5%, indicating growing confidence and interest in the company’s potential.
Tata Teleservices is showing encouraging signs of progress with reduced losses and promising growth prospects.
The company’s efforts to turn around its business are gaining traction, indicating a positive uptrend that may lead TTML’s share price to reach Rs 70-80 by 2025. You should do a risk-reward analysis before buying Tata Teleservices shares.
You can also read about other stocks’ target prices –
- Vodafone Idea Share Target Price
- IRCTC Share Price Target
- Adani Power Shares Target Price
- Yes Bank Share Price Target
Frequently Asked Questions (FAQ)
TTML’s historical share price performance has been dynamic, influenced by various factors such as market trends, company performance, and industry dynamics. Conducting a detailed analysis of the historical data can provide valuable insights into TTML’s past share price trends.
TTML’s growth prospects in the near future are influenced by a range of factors. The telecom industry is experiencing rapid technological advancements and increased demand for data services. TTML has the potential to capitalize on these trends by expanding its network coverage, improving its services, and offering innovative solutions to meet the evolving needs of customers.
Comparing TTML’s share price to its competitors allows us to assess its relative performance. It’s important to analyze various financial metrics, such as market capitalization, price-to-earnings ratio, and revenue growth, to gain a comprehensive understanding of how TTML stacks up against its peers. By conducting a comparative analysis, investors can evaluate TTML’s position in the market and make informed investment decisions.
Regulatory changes can have a significant impact on TTML’s share price. The telecom industry is subject to regulations related to licensing, spectrum allocation, pricing, and competition. Changes in these regulations can affect TTML’s operations, profitability, and market share. Investors should closely monitor regulatory developments and assess their potential impact on TTML’s business and share price.
The telecom industry is at the forefront of technological advancements, and TTML’s share price can be influenced by emerging technologies. For example, the rollout of 5G networks, advancements in the Internet of Things (IoT), and the increasing adoption of cloud services can shape the competitive landscape and impact TTML’s market position.