This Tata Group telecom services stock has zoomed over 1,000% in one year

Tata Teleservices (Maharashtra) was locked at the 5% upper circuit for a third straight day

Shares of Tata Teleservices (Maharashtra) (TTML) were locked at the 5 per cent upper circuit for a third straight day, at Rs 75.95, on the BSE on Wednesday in an otherwise volatile market. The Tata Group telecom services stock surpassed its previous high of Rs 73.70 touched on Wednesday, November 10, 2021.

A combined 4.54 million shares have changed hands and there are pending buy orders for a combined 4.69 million shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.05 per cent at 60,292 points at 01:14 pm. The index hit an intra-day high of 60,427 and a low of 60,029, exchange data shows.

In the past one month, the stock of TTML has surged 44 per cent, as compared to a 1.9 per cent fall in the Sensex. Moreover, in the past three months, it has rallied 109 per cent as against a 7.9 per cent rise in the benchmark index. Further, over the past one year, the market price of TTML has zoomed 1,019 per cent, as compared to a 37 per cent surge in the Sensex.

As of September 30, 2021, Tata Group companies held a combined 74.36 per cent holding in TTML, of which Tata Teleservices held 74.36 per cent stake, followed by Tata Sons (19.58 per cent) and Tata Power Company (6.48 per cent),  shareholding pattern data shows. Individual shareholders held 23.22 per cent holding in the company.

Tata Teleservices (TTSL), along-with its subsidiary Tata Teleservices (Maharashtra), is a growing market leader in the Enterprise space. It offers a comprehensive portfolio of voice, data and managed services to enterprises and carriers in the country under the brand name Tata Tele Business Services (TTBS).

Last month, TTBS had announced the launch of Smart Internet, Industry's first smart internet leased- single suite combining high speed internet with cloud based security and greater control at an optimized cost.

For first half (April-September) of the financial year 2021-22 (H1FY22), TTML had narrowed its net loss to Rs 632 crore from Rs 1,410 crore during the same period of FY21. The Company's current liabilities exceeded its current assets as on September 30, 2021.

TTML said that it has obtained a support letter from Its Promoter indicating that the Promoter will take necessary actions to organize for any shortfall in liquidity during the period of 12 months from the balance sheet date. "Based on the above, the Company is confident of its ability to meet the funds requirement and to continue its business as a going concern," TTML said.

Meanwhile, TTML along with TTSL has informed to Department of Telecommunication's (DoT) about its decision to opt for deferment of Its Adjusted Gross Revenue (AGR) related dues by four years. It has also Informed DoT that decision of converting Interest amount in equity shall be conveyed within stipulated time limit of 90 days from DoT letter dated October 14, 2021.

The Company has also projected to witness growth in the years to come on the basis of wide optical fiber network of ~132,000 kms (TTSL+TTML), as the company has strong brand presence across customers in this business with deep customer relationships.

"With changing technology and increasing competition and conditions created by COVID-19 epidemic, sustaining the growth without substantial incremental investments may be challenging. The Company may also explore opportunities to strategically restructure certain residual business lines/assets at an appropriate time," the company said  in its FY21 annual report.