Telecom penny stock under Rs 50 to keep under radar as company signs of services agreement with BSNL
The stock is up over 70 per cent from its 52-week low of Rs 27.48 per share.
Mahanagar Telephone Nigam Limited (MTNL), in its 360th Board Meeting held on November 14, 2024, received approval to enter into a Services Agreement with BSNL. This agreement, as vetted by the Ministry of Corporate Affairs (MCA), is designed to foster a collaborative partnership between the two telecommunications giants. The agreement is set to span a period of ten years, subject to potential early termination with a six-month notice period or extension by mutual consent.
Following the board's approval, MTNL and BSNL successfully executed the "SERVICES AGREEMENT" on November 22, 2024. This legally binding contract will officially commence on January 1, 2025, and its duration, as previously mentioned, is ten years. Both parties retain the flexibility to either terminate the agreement with a six-month notice or extend its term through mutual consent.
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Mahanagar Telephone Nigam Limited (MTNL) is a public sector undertaking incorporated in 1986. It was established to provide high-quality telecommunication services at affordable rates to the residents of Delhi and Mumbai, including their respective metropolitan regions. MTNL gained Navratna status in 1997, a recognition of its significant contribution to the Indian economy.
The company falls under the BSE Small-Cap Index with a market cap of over Rs 2,900 crore with a 5-year stock price CAGR of 50 per cent. The stock is up over 70 per cent from its 52-week low of Rs 27.48 per share. Investors should keep an eye on this telecom penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.