TTML Stock – Is it a Massively Operated Stock? Or a Great Revival Story?
TTBS (Tata Tele Business Services) formerly known as TTML (Tata Teleservices Maharashtra Ltd.) is a mid-cap company of Tata & Sons which offers telecommunication services.
The Stock TTML surged 1,800% in the last one year and generated massive income for its investors is now continuously hitting the lower circuits creating panic in its investors.
The retail investors who bought the stock above 270 levels are feeling trapped in the stock since they are not able to exit from the scrip as their sell order is not executing due to daily lower circuits.
Reasons Behind the Biggest Surge and Fall of TTML Stock
TTML stock witnessed a great rise and fall in the last couple of months. The stock TTML rallied up to Rs.290 from Rs.20 in the last one year though the company’s current fundamentals don’t justify this rally and price.
TTML Stock raised to Rs.290.15 on January 12 2022 and after that date, the stock is continuously hitting lower circuits which brought back the stock to below Rs.150 level.
The reason behind this dream run in the TTML stock is considered as “Revival of the company” and TATA’s most ambitious Super App called TATA Neu which is under testing phase and expected to launch in the month of March 2022. Super App is a one stop app for buying all the TATA products from groceries to booking flights.
Along with these another reason speculated for the biggest surge in TTML stock is – the company is expanding its business and offering more services, especially in Cloud and SaaS.
Under the Cloud and SaaS, TTML now offers Smartflo, Cloud CRM, Content Delivery Network, Document Management System and many more. TTBS has also tied up with Microsoft and providing Microsoft 365 service to small and medium businesses to transform their operations into a digital working environment.
The important thing to be noticed is that the TATA group has not made any official claims that TTBS will handle TATA’s super app TATA Neu, these are all just speculations and rumors.
What is the Reason for a Big Downfall in TTML Stock?
TTML made its 52-week high of Rs.290.15 on January 12 2022 and from January 13 the stock is hitting daily lower circuits of 5%.
The stock started to fall with the news – conversion of the interest to AGR dues into equity, i.e. TTBS management decided to pay AGR interest dues by equity and the Government to hold a 9.5% stake in TTML stock at the price of Rs.41.50.
Update: TTML management withdraws the conversion of AGR interest dues into equity on Feb 1, 2022.
Retail investors who bought the stock on the higher levels seeing TTBS’s future prospective are badly stuck in the stock. With this huge rally and fall, TTML stock became one of the heavily operated stocks.
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