FINANCE & STOCK ADVICE: My View On Tata Teleservices Ltd

About The Company

Tata Teleservices (Maharashtra) Limited (TTML) spearheads the Tata Group's presence in the telephony sector in the telecom circles of Maharashtra and Goa, and Mumbai. Ideally, being in such a lucrative area, the company should have done exceedingly well. But it only manages to post one loss after the other; the losses only just seem to pile up. During the year, the Company has acquired a wholly owned subsidiary viz 21st Century Infra Tele Ltd (21st Century), which now forms the “consolidated” performance.Recently, TTML has signed a MoU with Hirco Developments under which it will provide complete telecom solutions to Hirco’s Panvel project.

About The Results

For the year ended 31/03/09, the company posted a net loss of Rs.169.94 crore as against the loss of Rs.125.74 crore it posted in previous year. The only gratifying part was that its net income rose to Rs.2045.98 crore from Rs.1707.19 crore in previous year. Increased operating expenses and higher interest outgo have taken its toll.

Expenses were up 47% of which employee cost rose 21%, network operating cost was up 25%. Its interest outgo burgeoned from Rs.171.01 crore in FY08 to Rs.305.68 crore in FY09. Interest charges are disclosed on net basis, wherein interest and other income earned from treasury operations are reduced from the costs of treasury operations. Interest charges also include amounts aggregating to Rs.36.13 crore for the year ended March 31, 2009 as compared to the gain of Rs.9.98 crore in FY08, on account of foreign exchange fluctuations. Again here, the only silver lining is that EBITDA was up 21% at Rs.588 crore.

Adjusted Gross Revenue (AGR) market share increased by 1% as compared to the previous year, as per the reports published by the Telecom Regulatory Authority of India (TRAI), a growth of 14.8% compared to the industry growth of 3.6% in TTML’s geography. 2861 wireless sites were deployed as compared to 1538 sites at the end of the previous year. The company has a market share of around 50% in private landline telecom service providers in Mumbai.

During the year, FCCB holders converted their holdings into equity, due to which paid up equity share capital now stands increased at Rs.1897.19 crore. 49.70% of this capital, held by the promoters now stands pledged. Japan's NTT DoCoMo holds a 26% stake. The company does not plan to sell any more stake in its telecoms tower arm. In January, it had sold a 49% stake to an unlisted tower firm in a deal that valued the business at an enterprise value of Rs.13,000 crore.

About The Stock

Stock has performed well in the last rally and was in limelight after the merger news drive in with Tata Indicom. The stock has potential but any jump in short term is at least not expected.

Disclosure: I do not have any personal holding in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Tata Teleservices Ltd