Why MTNL Share prices are going high day by day?

एमटीएनएल के शेयर की कीमतें दिन-प्रतिदिन क्यों बढ़ती जा रही हैं?     

The Government of India established MTNL on April 1st, 1986, with the goals of improving the quality of telecom services, growing the telecom network, launching new services, and generating income for the telecom development requirements of Delhi and Mumbai, two of India’s major metropolises. MTNL is the principal provider of fixed-line telecommunication service in the two metropolitan cities of Delhi and Mumbai. 

MTNL was one of the top internet providers until 2015–16, but as mobile 4G services were introduced, its customer base steadily declined. At the same time, Jio fiber and Airtel FTTH reached the general public with higher-quality services.

Customers shifted to Jio and Airtel in search of higher service quality after the Government of India announced a massive VRS to MTNL employees in December 2019. As a result, approximately 90% of the employees took the VRS, leaving the company in terrible shape with numerous faults accumulating throughout Mumbai and Delhi.

When a COVID-19 lockdown was imposed in March 2020, a large number of phone lines were transferred to Jio and Airtel because copper cable faults could not be promptly fixed due to staff shortages caused by VRS 2019.

Even though MTNL is heavily indebted, all of its services have now been transferred to BSNL in Delhi and Mumbai.

Additionally, the management is unable to minimize the losses, and as a result of numerous operational mismanagements, such as small exchanges where RSUs have no customers but MTNL pays the space rent, electricity, and security guard fees, which total about two to three lacs per RSU. However, because of the MTNL management’s negligence, losses are growing daily, and customer management is at an all-time low, with senior officers’ egos preventing them from working together to resolve customer issues and utility bills.

The dedication and technical expertise of MTNL employees are demonstrated by the fact that, in just one year, officers and staff replaced the outdated telephone exchange with new BSNL LMG exchanges.

5 Reasons why MTNL stock is increasing day by day. 5 कारण क्यों MTNL का स्टॉक दिन-प्रतिदिन बढ़ रहा है।

  1. A sizable amount of MTNL’s office space, residential buildings, and land parcels are being sold at auction in order to generate revenue.

    2. The substantial amount of scrap material recovered from old telephone exchanges will assist in repaying the loans MTNL took out to run the telephone

    services in the past because BSNL, which has its own exchanges, manages MTNL’s telecom operation, leaving MTNL without any telecom operations.

    3. Since telecom operation revenue goes to BSNL accounts, MTNL staff receive their salaries from funds raised through the real estate business, such as

    rental income and revenue share received from BSNL.

    4. Since MTNL only has roughly 3,000 workers in Delhi and Mumbai, the workload is extremely light. Five percent of the 3000 are Group-A officers, twenty

    percent are Group-B officers, and the remaining employees are Group-C and Group-D.

    5. Since MTNL has large assets in strategic locations in Delhi and Mumbai, the company’s asset value is very high. Soon, everything will be monetized, which /

    will improve the balance sheet and cause the share price to rise steadily.

    PeriodPrice RangeKey Events
    2000₹390The height of the telecom and dot-com bubbles
    2005–2015₹50–₹100 → ₹20–₹50Declie starts with government liberalization and the emergence of private players.
    2015–2021₹20–₹60 → ₹17–₹22Long-term losses, debt, and delayed technological advancements
    2022–2024₹22–₹32 → ₹30–₹40Initial government revival talks and 4G/5G integration planning
    2025₹40–₹58Asset monetization aspirations and recent rallies fueled by policy declarations

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