Low Priced Scrip MTNL – Steal to Gain 20% within a year
The financial world is a mess, both in India and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. During such unsteady markets, where investors are looking for a safe bet, here is company which is and has been a debt free company for the last five years, a cash rich company (Rs 3369 crore) and to top it all the scrip is available (Rs 68.25) at a discount to its book value of Rs 189. Additionally, it is a PSU with the GoI holding a major stake in the company. MTNL is one such company and hence it is a safe heaven for investors at this
point in time.
On the CMP of Rs 68.25 the scrip is available at a PE of 8.19x its trailing four quarters earnings.Having a market cap-to-sales (trailing) of 0.91x the scrip is a steal at the current valuations. we strongly suggest a buy on this counter with an upside appreciation of 20 percent within a year.
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