"Bullish Prospects Ahead: Analyzing the Potential for TTML's Next Massive Bull Run"
Tata Teleservices Ltd, a key player in the wired and wireless telecommunication sector, operates under a Unified License with Access Service Authorization in Maharashtra and Goa, also holding the designation of an Internet Service Provider.
Demerger Impact:
During FY20, the Consumer Mobile Business of Tata Teleservices Ltd underwent a demerger, transferring operations to Bharti Airtel Limited through a Scheme of Arrangement. Post-demergence, the stock experienced a substantial uptrend, yielding significant returns for investors. However, in January 2022, selling pressure emerged as investors rushed to capitalize on their gains.
Correction and Bottoming Out:
The stock faced a corrective phase, finding potential bottoming in March 2023. Notably, the second half of the current year witnessed notable accumulation, signaling renewed interest from heavy investors.
Financial Performance:
Despite the stock's rollercoaster ride, it's crucial to highlight the financial challenges. Tata Teleservices Ltd has reported net losses quarter over quarter, coupled with a negative book value. The lack of positive data on record raises concerns for value investors.
Investor Sentiment:
While fundamental indicators remain unfavorable, institutional investors show a contrasting outlook. Foreign Institutional Investors (FIIs) have consistently increased their stake, rising from 2.03% to 2.23% in the recent September quarter. Domestic Institutional Investors (DIIs) also marginally increased their stake. While public holding has steadily decreased which is also positive.
Historical Perspective:
A noteworthy observation is that, even when the stock was trading at ₹4 in November 2020 with poor fundamentals, it has now surged to ₹95, maintaining similar underlying weaknesses and may move further more with poor fundamentals.
Technical Analysis:
Despite fundamental concerns, the stock exhibits positive technical signals. A double bottom pattern on the daily chart, a recognized trend reversal pattern, suggests potential for a bullish trend. Sustaining above the ₹98 to ₹100 range could trigger a substantial bull run.
