Tata Teleservices shares zoom 31% in 2 days; here is why

Shares of Tata Teleservices (Maharashtra) Ltd continued to witness a strong upward move for the second consecutive session on Thursday. The stock jumped 14.41 per cent to hit a day high of Rs 79. At this price, it has gained 35.72 per cent in just two trading days.

The spike follows a few reports that Tata Sons Ltd — the holding company of the $150 billion Tata Group — may infuse fresh capital into its loss-making telecom arm, Tata Teleservices Ltd (TTSL). Tata Teleservices (Maharashtra) is a subsidiary of TTSL. And, TTSL has to pay Rs 19,256 crore as adjusted gross revenue (AGR) along with other dues to the government by March 2026.

Earlier this week, the Supreme Court dismissed the petitions filed by telecom operators seeking a waiver on their long-standing AGR dues.

Technically, the scrip traded higher 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 78.14. A level below 30 is defined as oversold while a value above 70 is considered overbought.

"The stock has witnessed strong run for two straight sessions. It looks promising at current levels," Sebi-registered independent analyst Mitesh Panchal told Business Today.

"Support will be at Rs 74 and resistance at Rs 80. A decisive move above Rs 80 level may trigger a further upside towards Rs 84. The expected trading range will be between Rs 70 and Rs 84 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

The stock has a negative price-to-earnings (P/E) ratio of 11.51 against a price-to-book (P/B) value of (-)0.77. Earnings per share (EPS) stood at (-)6.54 with a return on equity (RoE) of 6.72. According to Trendlyne data, Tata Tele has a one-year beta of 1.4, indicating high volatility.

Along with the price action, the scrip saw high trading volume on BSE as well. Around 2.06 crore shares were last seen changing hands, much lower than the two-week average volume of 12.12 lakh. Turnover on the counter came at Rs 156.17 crore, commanding a market capitalisation (m-cap) of Rs 15,271.90 crore.