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Microcap stock zooms 94% thus far in July; skyrockets 163% in 3 weeks
Tamilnadu Telecommunications (TN Telecom) shares hit a 52-week high of ₹26.11 per share on the BSE today, as they got locked at the 5-per cent upper circuit on Friday at 11:53 AM. A combined 82,000 shares have changed hands on the BSE and NSE, so far in trade, and there are pending buy orders for 156,000 shares on both the exchanges, data shows. TN Telecom is a microcap company with a market captialisation of ₹119 crore.
The stock price of the microcap company, engaged in the business of manufacturing optical fiber cables for telecommunications, was locked in the upper circuit for the eighth straight trading day. Thus far in the month of July, the stock has zoomed 94 per cent from a level of ₹13.47. Further, in the past three weeks, it has skyrocketed 163 per cent from a price of ₹9.94, hit on June 20, 2025.
Currently, TN Telecom is trading under 'T' or Trade-for-Trade (T) group. The 'T' group is a surveillance measure that requires securities to be settled on a trade-to-trade basis.
Clarification sought from Tamilnadu Telecommunications
Last week, NSE and BSE sought clarification from TN Telecom with reference to the movement in its share price. However, the reply is still awaited.
'"Significant movement in (the company's) share price has been observed in Tamilnadu Telecommunication Limited. The Exchange, in order to ensure that investors have the latest relevant information about the company and to inform the market place so that the interest of the investors is safeguarded, has written to the company. The response from the company is awaited," NSE said on July 3, 2025.
Financial performance
The accumulated losses of the company amount to ₹2.35 crore and the net worth of the company was negative at ₹1.79 crore as of March 31, 2025.
TN Telecom was under rehabilitation period as per the erstwhile BIFR Sanctioned Scheme. Lack of executable orders and dull phase of optical fiber cable (OFC) market from the year 2010-11 onwards is the reason for the poor performance.
Meanwhile, TN Telecom, in its FY24 annual report, said that the requirement of OFC in the country is huge; however the delay in procurement is due to various procedural matters / issues in execution of big projects by the Government Clients.
The company is hoping to get continuous orders since the OFC market has picked up. The order booking position is expected to improve as there is huge requirement of OF cable in the near future due to the impact of 5G.
"The proposal of taking over the company/utilising capacity by BSNL was discussed with BSNL & Telecommunications Consultants India Limited (TCIL) both under the Department of Telecommunication. Promoter TCIL has initiated the proposal of sale of the entire stake of TCIL in TTL through DIPAM as per the revised procedure for strategic disinvestment in CPSEs. The same has been pursued with the Department of Telecom, Ministry of Communication. The strategic disinvestment will pave the way for revival of the company by the prospective buyers," the company had said in its FY24 annual report.
Top Impacting Opportunities /Drivers
BharatNet Phase III Project: BSNL, the state-owned telecommunications company, has floated a tender process amounting to approximately ₹ 65,000 crore for the implementation of the phase-III BharatNet project. There is a huge requirement of optical fiber cable more than 5,00,000 kms.
As telecom operators started looking for high fiber count cables in reduced diameters, optical fiber, and cable manufacturers are investing in research and development to realize smaller fibers and cables. These cables will be deployed for FTTx and 5G networks, the company said.
However, the competition within OFC business is becoming fierce due to emerging new technologies and frequent new product introductions in Optical fiber products which command competitive prices and preference in the market. The market price of cables is also varying due to competition, TN Telecom said in its FY24 annual report.
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