Tata Communications (NSE: TATACOMM) share: Tata Communications, a company owned by India’s Tata Group, has released its December quarter results.
The company’s revenue increased by 24.4% to Rs 5,633 crore in the December quarter. This is the fastest quarterly revenue growth in almost 9 years.
This is a new record in itself. However, the company’s profit declined by 88.6 percent to Rs 44.81 crore. The profit from the same quarter one year ago was 393.88 crore.
Stock Surge
The company’s shares closed 4.3% higher after the quarterly results. During trading the share price reached Rs 1802.10.
The share had touched the price of Rs 1,956.85 in September last year. At the same time, on March 16, 2023, the share price reached a 52-week low of Rs 1,157.10.
The top brokerage has set a target price of Rs 2300 for this share.
Focus On Revenue
Tata Communications has been focusing on increasing its revenues in the last few quarters, partially through acquisitions.
This Tata company wants to capture a larger share of the competitive market for cloud, networking services, media, and entertainment.
AS Lakshminarayanan, MD and CEO of Tata Communications, said that they are delighted to announce another quarter of solid growth.
In line with their strategy, data revenues have crossed Rs 4,000 crore with digital services contributing 45 percent.
Notice To Vodafone-Idea
Meanwhile, a subsidiary of Tata Communications has issued a termination notice to its customer Vodafone Idea.
Voda-Idea, a subsidiary of Aditya Birla Group, has failed to make timely payments to the Tata Group firm.
Let us tell you that Britain’s Vodafone Group PLC holds a 32.29 percent stake in Vodafone-Idea while Aditya Birla Group holds an 18.07 percent stake.
At the same time, the Government of India has a 33 percent customer share.
About Tata Communications Ltd
Tata Communications Limited is an Indian-based company that is an enabler of the global digital ecosystem.
It is a digital transformation provider for companies across the globe. The company’s Voice Solutions segment includes international and national long-distance services.
Their Data Services segment includes core and connectivity services, as well as digital platforms, and connected services.
Their Payment Solutions segment includes end-to-end automated ATM (ATM) implementation, and end-to-end payment point (POS) activation hosting core banking, complete financial inclusion, card issuance & managed services, and switching solutions to the banking industry.
The Transformation Services segment includes the business of providing telecommunications service management, & support.
Their Real Estate segment includes lease rents for properties that are provided by lease.
Its Company via its subsidiary Kaleyra, Inc., offers omnichannel integrated communication using a variety of platforms.
Fundamental Analysis of Tata Communications Ltd
| Market Cap | ₹ 50,434 Cr. |
| Current Price | ₹ 1,770 |
| 52-wk High | ₹ 1,957 |
| 52-wk Low | 1,157 |
| Stock P/E | 54.9 |
| Book Value | ₹ 51.0 |
| Dividend | 1.19 % |
| ROCE | 23.9 % |
| ROE | 142 % |
| Face Value | ₹ 10.0 |
| P/B Value | 34.7 |
| OPM | 21.2 % |
| EPS | ₹ 34.2 |
| Debt | ₹ 8,812 Cr. |
| Debt to Equity | 6.06 |
Tata Communications Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹1950 | ₹2300 |
| 2025 | ₹2360 | ₹2548 |
| 2026 | ₹2600 | ₹2670 |
| 2027 | ₹2700 | ₹2800 |
| 2028 | ₹3200 | ₹3600 |
| 2029 | ₹3840 | ₹4158 |
| 2030 | ₹4258 | ₹4500 |
Tata Communications Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 58.86% |
| Mar 2022 | 58.86% |
| June 2023 | 58.86% |
| Sept 2023 | 58.86% |
| Dec 2023 | 58.86% |
| FII Holding | |
| Dec 2022 | 17.28% |
| Mar 2022 | 16.99% |
| June 2023 | 17.18% |
| Sept 2023 | 17.53% |
| Dec 2023 | 19.20% |
| DII Holding | |
| Dec 2022 | 13.92% |
| Mar 2022 | 14.02% |
| June 2023 | 14.07% |
| Sept 2023 | 13.55% |
| Dec 2023 | 12.12% |
| Public Holding | |
| Dec 2022 | 9.92% |
| Mar 2022 | 10.11% |
| June 2023 | 9.88% |
| Sept 2023 | 10.06% |
| Dec 2023 | 9.81% |
Tata Communications Ltd Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹16,525 Cr |
| 2020 | ₹17,068 Cr |
| 2021 | ₹17,100 Cr |
| 2022 | ₹16,725 Cr |
| 2023 | ₹19,846 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹-80 Cr |
| 2020 | ₹-85 Cr |
| 2021 | ₹1,252 Cr |
| 2022 | ₹1,485 Cr |
| 2023 | ₹975 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | -50.41 |
| 2020 | -7.11 |
| 2021 | 84.89 |
| 2022 | 8.51 |
| 2023 | 4.96 |
Last 10 Years’ Profit Growth:
| 10 Years: | 16% |
| 5 Years: | 20% |
| 3 Years: | 72% |
| Current Year: | -49% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | — |
| 5 Years: | — |
| 3 Years: | — |
| Last Year: | 142% |
Last 10 Years’ Sales Growth:
| 10 Years: | 0% |
| 5 Years: | 1% |
| 3 Years: | 1% |
| Current Year: | 13% |
Conclusion
This article is a complete guide about Tata Communications Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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