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Ajit Mishra  | Answer  |Ask -

Answered on Mar 29, 2022

Shyamal Question by Shyamal on Mar 29, 2022Hindi
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I have Tata Teleservices (Maharashtra) Ltd (TTML) shares; it is quoted today around Rs 237. It has gone up twice (once up to Rs. 189 and then again up to Rs. 291) with upper circuit breakers and once went down to Rs.36 or so. Now it has again started downward movement (Rs. 291 to Rs. 237). Is it worth buying more if they come down under Rs. 100? Why is there so much movement in this share? Is anything big expected to happen in TTML?

Ans: TTML is at the forefront of digitalisation with its comprehensive portfolio of connectivity and cloud solutions. Positives are it has extensive and robust wire-line network as well as it has the largest portfolio of smart solutions involving cloud & SaaS, collaboration, connectivity, IoT, marketing & cyber security solutions. The company is taking efforts to strengthen its product portfolio and has launched enterprise grade solutions like Smartflo, Smartoffice, Smart Internet, SD-WANIflx, cyber security portfolio, etc. which bodes well with the company’s growth plan. Going ahead, overall increase in end user demand, up-gradation in technology and launching more solutions products will drive growth. Further, TTML’s group company, Tata Group is planning to launch Tata’s SuperApp and 5G plans and this may benefit TTML in the medium term.

However, the company’s financials seem weak, as revenue is muted and it is posting losses. Besides, it has high debt on books but as TTML is backed by Tata group, so debt obligations are expected to be met. Further, in the last one year the stock price has seen strong run-up. It’s prudent to wait for some meaningful turn-around in the financials.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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I have inherited shares from my father, who bought them at various points over the years. I do not have the exact cost of purchase of these shares. How do I determine the cost of acquisition for paying IT
Ans: When you inherit shares, the cost of acquisition for tax purposes is determined based on the price at which your father originally purchased them. Here’s how you can approach it:
- Use the Original Purchase Price: The cost of acquisition is the price at which your father bought the shares. If you don’t have records, try checking old brokerage statements, demat account records, or consulting the broker he used.
- Fair Market Value (FMV) Method:
- If the shares were acquired before April 1, 2001, you can take the FMV as of April 1, 2001 as the cost of acquisition.
- If the shares were listed on a stock exchange and held on January 31, 2018, and sold after March 31, 2018, the FMV as of January 31, 2018, can be considered as the cost of acquisition.
- Bonus Shares: If your father received bonus shares, their cost is considered zero for capital gains calculation.
- Holding Period: The holding period includes the time your father held the shares, which helps determine whether the gains are short-term (held for ≤12 months) or long-term (held for >12 months).
- Tax Treatment:
- Long-term capital gains (LTCG) on listed shares exceeding ?1 lakh are taxed at 10% without indexation.
- Short-term capital gains (STCG) are taxed at 15%.
If you don’t have access to purchase records, you may need to estimate the FMV based on historical stock prices or consult a tax expert for guidance.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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