MTNL on a roll, hits 52-week high; up 70% in 2012

NEW DELHI: Mahanagar Telephone Nigam Ltd ( MTNL) surged over 3 per cent to hit its fresh 52-week high at Rs 41.10 on Friday. The stock has surged over 30 per cent in the month of August alone, while for the year it has clocked a return of over 70 per cent.

At 02:30 pm, MTNL was trading 2.9 per cent higher at Rs 40.25. It has hit a high of Rs 41.10 and a low of Rs 38.05 today.

“The recent buying interest in MTNL can mainly be attributed to expected release of cash from surrendering broadband spectrum in Mumbai and Delhi circles, and the government’s intention to monetize its land and infrastructure,” Nitin Prakash Daga, AVP - Research at Microsec Capital Ltd, said.

The company has sought an approval to give up the spectrum in these circles. Furthermore, MTNL may generate healthy revenues from developing and / or letting out its land bank in some of prime locations in Delhi and Mumbai.

Daga is of the view that the recent developments may be supportive in MTNL’s initiatives to return in profits in the long term.