The MTNL stock has doubled in just nine trading sessions,a performance that’s rare in the stock market. This incredible rally has been fueled by the government’s decision to deposit ₹92 crore to clear the telecom PSU’s immediate bond interest dues.
Key Points:
Upper Circuit Lock: MTNL’s share price has been consistently hitting the upper circuit limit, indicating strong buying pressure.
Government Support: The government’s financial assistance has boosted investor confidence in the company’s ability to meet its obligations.
Multibagger Potential: The stock’s rapid appreciation has transformed it into a multibagger, offering substantial returns to early investors.
Cautious Optimism
Company Fundamentals: MTNL’s underlying business performance and long-term growth prospects need to be evaluated.
Market Sentiment: The stock’s current valuation might be inflated due to short-term euphoria.
Risk Tolerance: Investing in highly volatile stocks like MTNL requires a high-risk appetite.
It’s crucial to conduct thorough research or consult with a financial advisor before making any investment decisions.