Mahanagar Telephone Nigam Intrinsic Value

MTNL • Telecom
Current Stock Price
₹36.00
Primary Intrinsic Value
₹11.28
Market Cap
₹2268 Cr
+39.2% Upside
Median Value
₹50.10
Value Range
₹11 - ₹50
Assessment
Trading Below Calculated Value
Safety Margin
28.1%

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%
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check MTNL share price latest .

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

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