Tata Teleservices shares extend gains, soar 34% in three days; here's what analysts say

Shares of Tata Teleservices (Maharashtra) Ltd jumped more than 7 per cent in Friday's deals, extending their sharp gains for the third straight session. The stock jumped 7.49 per cent to hit a day high of Rs 84.29 over its previous close of Rs 78.42. At today's high price, the scrip has surged 33.50 per cent in just three days. Around 27.33 lakh shares changed hands today on BSE, which was more than three times compared to the two-week average volume of 8.86 lakh shares. Turnover on the counter stood at Rs 22.41 crore, commanding a market capitalisation (m-cap) of Rs 15,924.84 crore. The counter, however, trimmed some of its gains in late-morning deals and was last seen trading 4.12 per cent higher at Rs 81.65.

The company is scheduled to hold its Annual General Meeting (AGM) on June 27, 2023, post-market hours. Tata Tele posted a net profit of Rs 277.07 crore in the March 2023 quarter (Q4 FY23) against Rs 279.79 crore on a sequential basis. Revenue from operations stood at Rs 280.13 crore in Q4 FY23.

On the technical front, the near-term support for the stock could be seen at Rs 71, one of the analysts said.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has got resistance near Rs 84.50 where it can find some consolidation or maybe profit booking to slip lower to Rs 71 zone which is the near-term support zone."

Ravi Singh, Vice-President and Head of Research at Share India, said, "Tata Tele may witness some selling pressure at current levels. The momentum indicators are suggesting a weak trend in the counter. The stock price may touch the levels of 60 in the near term."

AR Ramachandran from Tips2trades said, "Investors should book profits at current levels as a fall till Rs 63 looks possible in the coming weeks."

As of March 2023 quarter, promoters held 74.36 per cent of the company. Tata Teleservices owned 48.30 per cent, while Tata Sons (holding company of Tata Group) and Tata Power accounted for 19.58 per cent and 6.48 per cent, respectively, of the total shareholding.

The stock was last seen trading higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 83.15. 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-earnings (P/E) ratio of 13.39. It has a negative price-to-book (P/B) value of 0.80.

It has a one-year beta of 1.19, indicating low volatility on the counter.

Tata Teleservices provides connectivity and communication solutions to enterprise customers. With services ranging from connectivity, collaboration, cloud, security, IoT and marketing solutions, it offers a portfolio of ICT services for businesses in India under the brand name Tata Tele Business Services (TTBS). TTBS provides integrated telecom solutions to enterprises and offers one-stop-shop business solutions along with managed services.

Meanwhile, Indian equity benchmarks slipped into the red after opening higher today. The domestic indices were dragged by consumer, technology, metal and state-owned lenders.

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