Tata Communications Ltd
Ticker: TATACOMM
Decent
66/100
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Investing Reference
Price
1955.10
Market Cap
55720.35
Debt/Equity
4.0860
ROE %
76.283
PB
18.4243
Promoter %
58.863
Pledge %
0.000
1Y Rev Growth %
14.658
5Y Rev Growth %
7.294
NP Margin %
7.536
NP Margin 5Y Avg %
7.559
Trading Reference
1M Return %
16.166
6M Return %
22.885
1Y Return %
1.232
% Away 52W High
2.245
% Away 52W Low
51.441
Daily Volume
7094725
Investment Verdict
Risky
Score 48/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Momentum
Score 81/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Tata Communications Ltd is currently trading near a key support level, with the 50-day EMA showing a bullish crossover above the 200-day EMA. Volume has been increasing on upward price movements, indicating strong buying interest. In the medium-term, there is a favorable outlook for the stock to test resistance levels, suggesting potential upside.
Upside Probability: 15% | Downside Probability: 5%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Tata Communications Ltd is a leading global digital infrastructure provider, empowering businesses with innovative solutions in connectivity, cloud, and security. Catering to enterprises of all sizes, it plays a crucial role in enabling digital transformation across various sectors. With a strong presence in India and worldwide, Tata Communications is committed to delivering reliable and scalable services that drive growth and efficiency. Its extensive network and expertise make it a trusted partner for organizations looking to enhance their digital capabilities.
- Global leader in digital infrastructure
- Comprehensive solutions for connectivity and cloud
- Trusted partner for enterprises
- Strong presence in India and worldwide
- Focus on innovation and digital transformation
Investment Thesis
Tata Communications Ltd presents a compelling investment opportunity due to its strong promoter backing, significant growth potential in digital services, and attractive valuation compared to peers. The company's robust infrastructure and innovative solutions position it well for future expansion in the digital landscape.
- Strong backing from the Tata Group enhances credibility and stability.
- Significant growth potential in digital services, driven by increasing demand for connectivity.
- Attractive valuation metrics compared to industry peers, offering a favorable entry point.
- Robust infrastructure supports scalability and innovation in emerging technologies.
- Strategic partnerships and investments position Tata Communications for sustained growth.
Opportunity vs Risk
Opportunities
- Growing demand for digital services
- Expansion in global markets
- Strong focus on 5G rollout
- Strategic partnerships with tech firms
Risks ⚠️
- Intense competition in telecom sector
- Regulatory changes impacting operations
- High debt levels
- Economic slowdown affecting revenue
Peer Perspective
Tata Communications Ltd trades at a slight premium to peers like Bharti Airtel and Vodafone Idea, driven by its robust growth potential. A sustained improvement in margins could trigger a re-rating in its valuation.
Future Outlook
Tata Communications Ltd is well-positioned for growth in digital services, but successful execution of its strategic initiatives and effective cost control will be crucial to fully realize its potential in the evolving market.
📊 Stock Investment Checklist (100 Points)
Tata Communications Ltd • Updated: 2025-09-18 09:13:06
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10BusinessHighTelecommunications is a future-ready sector with a clear model, but competition is increasing.
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10GrowthHighRevenue growth has been consistent, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but OCF is fluctuating compared to net profit.
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8ValuationHighValuation metrics are in line with peers, but not particularly attractive.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is strong, but there are concerns about pledging.
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5DriversGoodGrowth drivers exist, but execution risks are significant.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity.
Final Score & Verdict
Score 66 / 100
• Decent
Tata Communications Ltd shows potential for growth but faces challenges in profitability and execution risks. It is a decent investment but requires careful monitoring.