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.