MTNL shares dive 6% on defaulting Rs 8,346 crore in bank loan repayments. Details here

Shares of Mahanagar Telephone Nigam Ltd (MTNL) shares slumped 5.63 per cent in Monday's trade to hit a low of Rs 41.38. Last checked, the stock was down 3.53 per cent at Rs 42.30. At this price, it has corrected 17.69 per cent on a year-to-date (YTD) basis.

Today's drop in the share price came after the state-run telecom PSU informed exchanges that it has defaulted on loan repayments of over Rs 8,300 crore to multiple banks.

MTNL has mentioned that it has failed to meet its financial obligations to a consortium of lenders, including Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank and Indian Overseas Bank.

The default payment numbers include the loan's principal amount along with the overdue interest amount, which occurred between August 2024 and February 2025.

Technically, MTNL's scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (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) 45.33. According to Trendlyne data, MTNL has a one-year beta of 1.5, indicating high volatility.

The counter saw heavy trading volume on BSE today as around 4.87 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 2.37 lakh shares. Turnover on the counter came at Rs 2.04 crore, commanding a market capitalisation (m-cap) of Rs 2,679.39 crore. There were 2.21 lakh sell orders against buy orders of 1.57 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.