scorecardThis multibagger Tata stock gave exceptional returns to investors but analysts are not impressed
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This multibagger Tata stock gave exceptional returns to investors but analysts are not impressed

This multibagger Tata stock gave exceptional returns to investors but analysts are not impressed
Stock Market3 min read
  • If an investor had invested ₹10,000 in this stock a year ago, the investment would have turned to over ₹1.55 lakh today.
  • The Tata Group telecom services company Tata Teleservices (Maharashtra) is a leading enabler of digital connectivity and cloud solutions to enterprises.
  • Shares of the company have multiplied over 28 times in the last five years from ₹7 per share to ₹202 today.
Tata Group telecom services company Tata Teleservices (Maharashtra) is among those stocks that every investor dreams of investing in as it has made huge sums of money for investors over a period of time.

The company got every investors’ attention because of having a strong parent -- Tata Group -- despite making losses.

If an investor had invested ₹10,000 in this stock a year ago, the investment would have turned to over ₹1.55 lakh in one year. Moreover, shares of the company have multiplied over 28 times in the last five years from ₹7 per share to ₹202 today.

The Tata Group telecom services company Tata Teleservices (Maharashtra) is a leading enabler of digital connectivity and cloud solutions to enterprises.

The Tata Group company’s surge in share price does not match the reality of its business.

Simply put, the company has been making huge losses for a long time although its losses have narrowed gradually.
The company is a business-to-business provider of calling and internet services for clients in Maharashtra and Goa. It provides connectivity and communication solutions ranging from connectivity, collaboration, cloud, security, internet of things (IoT), marketing solutions and so on.

To add to the woes, the company has been struggling with a huge debt for a long time. Its net total debt stood at ₹19,315 crore as of March 31, 2021, rising from ₹16,634 crore in the previous year.

The company in its annual report of 2021 has admitted that it experienced difficulties in its borrowing programmes in the past and the current economic scenario on account of the COVID-19 which may impact its existing debt adversely.

Despite the company’s not-so-good balance sheet, shares of the company have hit the 5% upper circuit in several instances in the recent past.
There are talks that the launch of high-speed 5G network will benefit the company in aiding broadband internet services in all villages.

The company is banking on the new trend of digital transformation for enterprises since COVID-19 to provide an entire service of internet connectivity to a firm.

“The pandemic has highlighted the importance of connectivity, with large enterprises seeking higher speeds and more data. Going forward it is expected that the small and medium sized businesses (SMBs) spending on information and communications technology (ICT) digital transformation solutions like cloud, digital collaboration, use of high speed internet and security solutions will increase,” the company said in its annual report.

In fact, analysts suggest investors to stay away from investing in such highly speculative stocks because of lack of good fundamentals.

“Tata Teleservices is a highly speculative stock trading with high volatility but low volume. Generally, investors should avoid investing in such type [sic] of manipulative stocks irrespective of its return as it is to compensate for the high risk associated with them,” said Ravi Singh, vice president and head of research at Share India.

“We can’t conclusively say whether the company has performed due to any fundamental reasons or not. One more point to be noted is that in a bull run there are many penny stocks, which defy gravity and rise without any change in underlying fundamentals,” said Santosh Meena, head of research at, Swastika Investmart.


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