BSNL Revival Boosts MTNL Share Price 18%
The surge in MTNL's share price is a significant development for the company, and its impact on the telecom sector will be closely watched. With the government's support and the company's efforts to revive its operations, MTNL is poised for growth, and its share price is expected to remain a key indicator of its progress.
MTNL's share price surged to a three-week high of Rs 51.20, driven by four key factors, including asset monetization, government backing, high trading activity, and positive stock performance, with the stock delivering a 14% return in five trading days.
The asset monetization efforts of MTNL have been successful, with the company raising Rs 2,134.61 crore from selling lands and buildings, and an additional Rs 258.25 crore from monetizing towers and fiber networks. This move has helped to boost investor confidence in the company.
The government's backing has also played a significant role in the surge, with financial aid and revival packages, including a Rs 1.64 lakh crore package in 2022 and a recent approval of Rs 6,982 crore capex for BSNL, reassuring investors about the company's future prospects. The high trading activity, with over 27 lakh shares changing hands, exceeding the two-week average, has also contributed to the stock's upward momentum.
MTNL's share price has delivered a 49% return in the past year, despite a 4% decline year-to-date. The stock's performance has been impressive, with the company's efforts to monetize its assets and the government's support contributing to its growth.
As the company continues to work on its revival plans, investors are keeping a close eye on its progress. With the government's backing and the company's efforts to monetize its assets, MTNL's share price is expected to remain volatile, but the overall trend is expected to be positive.
