MTNL was listed on the NSE on February 17, 1999. In the last five years, the company has given a massive return of more than 500% to its investors. Will MTNL continue to provide such great returns in the future as well? Let’s explore MTNL’s growth potential and MTNL share price target from 2025 to 2050 in this article.
About MTNL
Mahanagar Telephone Nigam Limited (MTNL) is a government-owned telecom company in India. It was established in 1986 to offer phone and internet services in Delhi and Mumbai. MTNL offers landline, mobile, and broadband services. Over the years, it has contributed significantly to the expansion of telecom services in Delhi and Mumbai.
MTNL Business Model
- Mobile Services: MTNL generates revenue by offering mobile network services such as prepaid and postpaid plans, calls, SMS, and internet data.
- Broadband and Fibre Services: MTNL generates revenue by providing broadband and fiber-to-the-home (FTTH) internet services to consumers and businesses.
- Landline Services: MTNL makes money by offering traditional landline connections as well as value-added services such as caller ID and call forwarding.
- Leasing Infrastructure: MTNL generates revenue by leasing its telecom towers, fibre network, and other infrastructure to private telecom companies.
- International Calling and Roaming: MTNL generates revenue from international calling services and roaming charges for users travelling abroad.
- Enterprise Solutions: MTNL generates revenue by providing telecom solutions to businesses, such as cloud services, leased lines, and VPN connections.
MTNL Fundamental Analysis
| Stock Name | Mahanagar Telephone Nigam Limited |
|---|---|
| NSE Symbol | MTNL |
| Market Cap | ₹ 2664 Cr. |
| 52W High | ₹ 102 |
| 52W Low | ₹ 31.2 |
| Stock P/E | – |
| Book Value | ₹ -401 |
| Dividend Yield | 0.00 % |
| ROCE | -8.18 % |
| ROE | – |
| Face Value | ₹ 10.0 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 56.82% | 56.25% | 56.25% |
| FIIs | 0.47% | 0.55% | 0.09% |
| DIIs | 13.89% | 13.63% | 13.49% |
| Public | 28.81% | 29.56% | 30.16% |
| No. of Shareholders | 1,87,064 | 1,94,974 | 4,41,629 |
Key Factors Driving MTNL’s Future Growth
- Government Support: MTNL benefits from government assistance in securing funds and expanding services.
- 5G Expansion: MTNL has the potential to expand by upgrading its network and providing 5G services in the future.
- Fibre Optic Network: By improving its fibre optic infrastructure, MTNL can increase the availability of high-speed broadband services.
- Collaboration with BSNL: MTNL’s partnership with BSNL can result in cost savings and improved service coverage.
- Digital Services Expansion: MTNL can increase revenue by expanding digital services such as cloud solutions, data centres, and enterprise telecom solutions.
- Rising Internet Demand: As more people and businesses rely on the Internet, MTNL may see an increase in broadband users.
- Monetising Assets: MTNL owns valuable real estate and telecom infrastructure that can be leased or sold for additional revenue.
Pros of MTNL
- Increase in Institutional Confidence: DIIs have increased their holding to 13.49% in December 2024 from 13.47% in September 2024 while FIIs have increased their holding to 0.09% in December 2024 from 0.06% in September 2024, indicating a strong institutional confidence in the company’s future growth prospects.
Cons of MTNL
- Declining Market Share: MTNL is losing customers to private telecom giants like Jio, Airtel, and Vodafone-Idea.
- Decreasing Sales – MTNL sales is decreasing at a CAGR of 17% over the last five years.
- Decreasing Profits – MTNL’s profit is decreasing at a CAGR of 13% over the last three years.
- Low Return on Capital Employed (ROCE): MTNL’s 5-year average ROCE is -8.29%, indicating inefficient use of capital to generate profits.
- Low Interest Coverage Ratio: The interest coverage ratio of MTNL is -0.14 which shows that the company is struggling to pay interest.
| Years | Target Price |
|---|---|
| MTNL Share Price Target 2025 | ₹53 to ₹65 |
| MTNL Share Price Target 2026 | ₹64 to ₹85 |
| MTNL Share Price Target 2027 | ₹77 to ₹110 |
| MTNL Share Price Target 2028 | ₹92 to ₹142 |
| MTNL Share Price Target 2029 | ₹110 to ₹185 |
| MTNL Share Price Target 2030 | ₹135 to ₹240 |
| MTNL Share Price Target 2035 | ₹270 to ₹720 |
| MTNL Share Price Target 2040 | ₹550 to ₹2160 |
| MTNL Share Price Target 2050 | ₹2200 to ₹13000 |
Conclusion
MTNL’s stock price has risen significantly in recent years, but its future remains uncertain due to declining sales, decreasing profits, and financial difficulties. While government support, 5G expansion, and asset revenue provide growth opportunities, MTNL faces strong competition from private telecom companies. For the latest updates, you can visit MTNL’s official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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