Shares of Mahanagar Telephone Nigam Ltd (MTNL) soared to new highs, reaching the 20% upper circuit in today’s trading session. The stock peaked at Rs 57.16, marking a remarkable 27.58% gain in just two trading days. Let's explore the key drivers behind this surge.

Key Drivers Behind MTNL’s Stock Rally

1. Government’s Asset Monetisation Plan

The Indian government has approved a massive Rs 16,000 crore asset monetisation plan for MTNL. This initiative is expected to support debt repayment and operational restructuring, enhancing investor confidence and market sentiment.

2. Expansion of Rural Broadband Connectivity

The Union Budget 2025-26 introduced a strategic push for broadband infrastructure under the ‘Bharat Net’ project. This initiative aims to provide high-speed internet to government schools and healthcare centres in rural areas, positioning MTNL as a key player in India’s digital expansion.

Technical Analysis – Bullish Trends

• Trading above 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).
• 14-day Relative Strength Index (RSI) at 66.82, approaching the overbought zone.

Fundamental Insights – Valuation Metrics

• Price-to-Equity (P/E) Ratio: (-1.07)
• Price-to-Book (P/B) Value: (-0.14)
• Earnings per Share (EPS): (-52.69)
• Return on Equity (RoE): 13.12%
      

Trading Activity & Market Capitalisation

MTNL witnessed a surge in trading volumes on the BSE, with 40.17 lakh shares exchanged—well above the two-week average of 4.84 lakh shares. The total turnover stood at Rs 22.63 crore, driving the company’s market capitalisation to Rs 3,560.13 crore.

Ownership Structure – Government vs Public Stake

• 56.25% of MTNL’s shares are owned by the Government of India.
• 43.75% stake is held by FIIs, banks, mutual funds, and retail investors.

Conclusion – Is MTNL a Good Investment?

The recent stock rally reflects growing optimism in MTNL’s financial recovery and telecom expansion. However, investors should keep an eye on the government’s asset monetisation execution and future policy changes before making any investment decisions.

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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a financial advisor Mbc trading Platform  before making any investment decisions.