Mahanagar Telephone Nigam Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Mahanagar Telephone Nigam has not reported any payouts.
• Unable to evaluate Mahanagar Telephone Nigam's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Mahanagar Telephone Nigam's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Whilst loss making Mahanagar Telephone Nigam has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -39.6% per year.
• Whilst loss making Mahanagar Telephone Nigam has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Cons

• Mahanagar Telephone Nigam's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not well covered by operating cash flow (6.3%, less than 20% of total debt).
• Mahanagar Telephone Nigam has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
• Mahanagar Telephone Nigam's long term commitments exceed its cash and other short term assets.
• Irrelevant to check if Mahanagar Telephone Nigam's debt level has increased considering it has negative shareholder equity.
• Mahanagar Telephone Nigam has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
• High level of physical assets or inventory.

management

Pros

• Sunil's remuneration is about average for companies of similar size in India.

Cons

• The average tenure for the Mahanagar Telephone Nigam board of directors is less than 3 years, this suggests a new board.
• Sunil's compensation has increased whilst company is loss making.
• The average tenure for the Mahanagar Telephone Nigam management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Mahanagar Telephone Nigam is not covered by any analysts.
• Mahanagar Telephone Nigam has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Mahanagar Telephone Nigam's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Mahanagar Telephone Nigam does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• It is difficult to establish if Mahanagar Telephone Nigam has efficiently used its assets last year compared to the Asia Telecom industry average (Return on Assets) as it is loss-making.
• It is difficult to establish if Mahanagar Telephone Nigam improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Mahanagar Telephone Nigam has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
• Unable to compare Mahanagar Telephone Nigam's 1-year growth to the Asia Telecom industry average as it is not currently profitable.

value

Pros

• Mahanagar Telephone Nigam's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Mahanagar Telephone Nigam's share price is below the future cash flow value, and at a substantial discount (> 40%).
• MTNL outperformed the Telecom industry which returned -14.4% over the past year.
• MTNL outperformed the Market in India which returned -14.5% over the past year.
• NSEI:MTNL is up 27.3% outperforming the Telecom industry which returned -0% over the past month.
• NSEI:MTNL is up 27.3% outperforming the market in India which returned 8% over the past month.

Cons

• Mahanagar Telephone Nigam has negative assets, we can't compare the value of its assets to the Asia Telecom industry average.
• Mahanagar Telephone Nigam is loss making, we can't compare its value to the Asia Telecom industry average.
• Mahanagar Telephone Nigam is loss making, we can't compare the value of its earnings to the India market.