MTNL shares zoomed over 18% today. Here is why

Shares of Mahanagar Telephone Nigam Ltd (MTNL) saw a sharp uptick in Thursday's trade, jumping 18.37 per cent to hit a high of Rs 51.30. The stock was last seen trading 16.15 per cent higher at Rs 50.34. Despite today's rise, it has shed 2.04 per cent on a year-to-date (YTD) basis.

MTNL's stock surged after it was learnt that the state-run telecom PSU received Rs 2,134.61 crore from the monetisation of lands and buildings till January 2025.

Data shared by Minister of State for Communications Pemmasani Chandra Sekhar in Lok Sabha showed that BSNL and MTNL have earned Rs 2,387.82 crore and Rs 2,134.61 crore, respectively, up to January 2025 from monetisation of lands and buildings. In addition, BSNL earned Rs 8,204.18 crore and MTNL got Rs 258.25 crore from the monetisation of close assets comprising tower and fibre during the same period.

"Monetisation of assets is being done as per the government's approved policy and its impact on the PSUs is being monitored closely," Sekhar stated.

Technically, MTNL's scrip traded higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 59.14. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 0.95 against a price-to-book (P/B) value of (-)0.12. Earnings per share (EPS) stood at (-)52.60 with a return on equity of (RoE) 13.10.

The counter saw high trading volume on BSE as around 27.23 lakh shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 4.47 lakh shares. Turnover on the counter came at Rs 13.39 crore, commanding a market capitalisation (m-cap) of Rs 3,172.05 crore. There were 29.52 lakh buy orders against sell orders of 7.86 lakh shares.

"At present, 56.25 per cent of equity shares are held by the government and the remaining 43.75 per cent of shares are held by FIIs, Financial Institutions, Banks, Mutual Funds and others, including individual investors," MTNL mentioned.