Jobaaj Stories
MTNL Share Price Soars 18%!
Mahanagar Telephone Nigam Limited (MTNL) shares experienced a dramatic 18% surge on March 13, 2025, reaching over ₹51 per share. This significant jump follows the announcement that the state-run telecom firm generated ₹2,134.61 crore from asset monetization, primarily from land and building sales. Written by Chandrashekhar Gupta.
Asset Monetization Fuels the Rally
The surge in MTNL's share price is directly attributed to the government's revelation in Parliament regarding the successful monetization of assets. This substantial influx of funds has boosted investor confidence, leading to a significant increase in trading volume and share price. Both MTNL and BSNL have collectively earned over ₹12,984 crore through this initiative since 2019.
MTNL's Recent Performance: A Rollercoaster Ride
MTNL's stock has seen significant volatility in recent months. After a 315% rise between July 2023 and July 2024, the share price experienced a 40% correction over the following eight months. This recent rally marks a potential turning point, but investors remain cautious given the challenges faced by the company in a competitive market dominated by private players.
Market Share and Ownership
As of December 2024, private telecom companies held a commanding 91.92% of India's wireless market share. MTNL and BSNL together account for a mere 8.08%. The Indian government retains a significant stake in MTNL (56.3% as of Q3FY25), with LIC being the second-largest shareholder.
The Road Ahead for MTNL
While the recent surge is encouraging, MTNL's long-term success depends on several factors, including improved operational efficiency, sustained revenue growth, and strategic adaptation to the evolving telecom landscape. The government's continued support and asset monetization strategy will play a crucial role in strengthening the company's financial position. However, lasting recovery will require a clear roadmap for long-term growth and technological advancements.
Disclaimer: This information is for educational purposes only and not financial advice. Consult a certified investment advisor before making any investment decisions.
