Best Delivery Buy !!! Mahanagar Telephone Nigam Ltd ( MTNL ) : 71.85

( Recommended in SAKAL NEWS PAPER. Arthvishwa ) : 30th March 2009
Notables Observes:
  • On 28th February Mahanagar Telephone Nigam Ltd. was incorporated as a Public Limited Company under the Companies Act, 1956. The company has been set up to take over the management, control and operation of Delhi Telephone District (Excluding public telegraph service) and Mumbai Telephone District of the Department of Telecommunications and to plan, establish, develop, provide, operate and maintain all types of telecommunication services including Telephone, telex, wireless, data communication, telematic and other like forms of communication.
  • One of the important objectives of the company is to raise the necessary finance to meet its own developmental needs and also that of the telecommunications board of the Department of Telecommunication.

The Main objectives and aims of Nigam are as follows:

  1. To upgrade the quality of telecom services
  2. To expand telecom
  3. To raise necessary financial resources
  4. To provide new telecommunication services, particularly needed by the business community and public administration such as Cellular Mobile Radio Telephone, Radio Paging, Fascimile Videotex, Teletex, Electronic Mail etc.
  5. To invest in Human Resource Development
  6. To organise and dovetail the training programmes

Share Holding patern :

  • Promoter : 56.25 %
  • Public : 35.30 %

Financial Highlights :

  • Net Profit / (Loss) of Rs. 58.27 Crore for the quarter ending on 31-DEC-2008 against Rs. 91.86 lacs for the quarter ending on 30-SEP-200Crore8.
  • Net Sales of Rs. 1132.26 Crore for quarter ending on 31-DEC-2008 against Rs. 1204.92 Crores for the quarter ending on 30-SEP-2008.
  • Mahanagar Telephone Nigam Ltd (MTNL) has informed BSE that MTNL has on March 27, 2009 received refund of Rs 516.18 crores from Income Tax Department pursuant to the orders of Income Tax Appellate Tribunal for the Assessment years 2001-02 & 2003-04 with respect to the issue of License Fee and 80IA deduction.

Technical Overview :

The stock On Weekly Chart has given a "Inverted Head & Shoulder" breakout with huge volumes, indicating the trend reversal and beginning of a uptrend. The stock is recomended to buy at cmp Rs 71.85

Support Levels :

  • Support 1 : 68
  • Support 2 : 65

Stop Loss : 59 on closing basis.

Targets :

  • Target 1 : 82
  • Target 2 : 90
  • Target 3 : 100
  • Target 4 : 115

Period : 5 to 6 months.