Mahanagar Telephone Nigam Intrinsic Value
MTNL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| Revenue Multiple Method | revenue | ₹11.28 | ₹10.15 - ₹12.41 | -68.7% | Revenue/Share: ₹14.10, P/S: 0.8x |
| Simple DCF (5Y) | dcf | ₹50.10 | ₹40.08 - ₹60.12 | +39.2% | CF Growth: 5.0%, Discount: 15% |
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Valuation Comparison Chart
MTNL Intrinsic Value Analysis
What is the intrinsic value of MTNL?
Based on our comprehensive analysis using 2 different valuation methods, the estimated intrinsic value of Mahanagar Telephone Nigam (MTNL) is ₹50.10 (median value). With the current market price of ₹36.00, this represents a +39.2% variance from our estimated fair value.
The valuation range spans from ₹11.28 to ₹50.10, indicating ₹11.28 - ₹50.10.
Is MTNL undervalued or overvalued?
Based on our multi-method analysis, Mahanagar Telephone Nigam (MTNL) appears to be trading below calculated value by approximately 39.2%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.22 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | -0.38 | Industry Standard: <0.5 | Below 0.5 | Indicates financial leverage level |
| Return on Equity | 14.3% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | -57.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.09x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Mahanagar Telephone Nigam
Additional stock information and data for MTNL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹340 Cr | ₹326 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹130 Cr | ₹130 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹64 Cr | ₹-23 Cr | Positive Operating Cash Flow | 6/10 |
| March 2022 | ₹704 Cr | ₹704 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹-225 Cr | ₹-355 Cr | Negative Cash Flow | 3/10 |