Tata Tele. Mah. (TTML)

FairStock Score: 30/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Free cash flow is positive at ₹396 Cr, showing cash generation despite accounting losses.
• Profit growth of 53.55% indicates losses are narrowing; latest quarter net loss was ₹150 Cr.
• Piotroski F-Score of 7/9 suggests improving operational and financial fundamentals.
• Promoter holding of 74.36% aligns insiders with minority shareholders.
• DCF intrinsic value of ₹108.36 is well above the market price of ₹45.27, if turnaround assumptions hold.

Concerns

• Negative book value of ₹-102.17 and debt/equity of -1.04 mean net worth is wiped out.
• Altman Z-Score of -8.51 indicates high financial distress risk.
• P/E of 0.00 and EV/EBITDA of 2667.43 make conventional valuation meaningless; latest quarter still posted a net loss of ₹150 Cr.
• Sales are declining at -5.04%, and there is zero dividend yield in a capital-hungry telecom sector.

AI Analysis

When I look at Tata Tele. Mah., the first thing that strikes me is what Graham called the margin of safety. At ₹45.27, the market caps this at ₹8,131 Cr, but the latest quarter loses ₹150 Cr on sales of only ₹294 Cr. The P/E is zero because there are no earnings; book value is negative at ₹-102.17. I cannot put a fair price on an asset with negative equity. A negative debt/equity of -1.04 and an Altman Z-Score of -8.51 scream financial stress, not a castle with an economic moat. Telecom remains a brutal capital-intensive business, and sales fell -5.04% over the last year. The FairStock Score of 30/100 also tells me this is risky. Still, I am not blind to signs of life. Free cash flow is positive at ₹396 Cr, ROCE is 50.32%, and profit growth of 53.55% suggests losses are narrowing. The Piotroski F-Score of 7/9 is surprisingly healthy, and promoter holding at 74.36% is comforting. If someone hands me a DCF value of ₹108.36, I remind myself that a DCF is only as good as its assumptions; with negative book value and an EV/EBITDA of 2667.43, those assumptions are fragile. I would call this a possible turnaround, not an investment yet. In Mumbai, we say do not catch a falling knife. I want to see the quarterly net loss convert into profits, sales growth return, and the balance sheet repair itself. Until then, this belongs not in the wonderful-company bucket; it is a distressed operation. I will watch from a distance.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer