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Tata Communications Ltd Stock Analysis

Large Cap
Evaluated by 1550 users | BSE: 500483 | NSE: TATACOMM |
Telecommunication - Service Provider
Tata Communication, incorporated in 1986 is part of the $62.5 billion Tata Group.The company, formerly Videsh Sanchar Nigam, was acquired from the Government of India. It is leading global provider of a new world of communications.It provides a range of services that includes transmission, IP,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tata Communications Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 3.23%2.93%5.05%4.44%6.4%3.98%4.58%5.13%0.75%5.89%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,6124,0924,4164,3764,3194,7905,0685,2525,3895,750
Y-o-Y Gr. Rt.-13.3%7.9%-0.9%-1.3%10.9%5.8%3.6%2.6%6.7%
Adjusted EPS (Rs.) 5.644.3111.9311.8719.3212.1514.9616.41.4716.64
Y-o-Y Gr. Rt.--23.6%176.8%-0.5%62.8%-37.1%23.1%9.6%-91%1032%
Book Value per Share (Rs.) 245.88250.42263.73276.69293.05312.13324.74308.89287.68288.44
Adjusted Net Profit 16112334033855134642646741.8474
Net Op. Cash Flow (Rs. Cr.) 8191,2141,5951,2041,4619089711,0291,2481,108
Debt to Cash Flow from Ops 2.711.120.490.780.40.750.760.510.360.49
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tata Communications Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.3%5.9%4.3%6.7%
Adjusted EPS 12.8%-2.9%3.6%1032%
Book Value per Share 1.8-0.3-3.90.3
Share Price 20% 19.6% 14.9% 147.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 2.251.744.644.396.784.014.75.180.495.78
Operating Profit Margin (%) 23.724.1522.6522.823.819.8123.5424.1722.7527.34
Net Profit Margin (%) 4.4537.77.7312.757.238.418.90.788.25
Debt to Equity 0.320.190.10.120.070.080.080.060.060.07
Working Capital Days 442607740730753471240226236226
Cash Conversion Cycle -66-54-40-52-53-37-38-37-42-51
Entity Percentage Holding
Promoters 74.99%
Institutions 19.04%
Non-Institutions 5.98%
Pledged *3.193.193.193.193.193.193.903.903.903.90
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tata Communications Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tata Communications Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tata Communications Ltd's performance infers:

Tata Communications Ltd earnings have declined by -2.9%, whereas share price has appreciated 19.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Tata Communications Ltd share prices over the last 10 years. Here is what we found out:

Tata Communications Ltd share price has appreciated 14.4% annually over the past ten years.

Tata Communication, incorporated in 1986 is part of the $62.5 billion Tata Group.The company, formerly Videsh Sanchar Nigam, was acquired from the Government of India. It is leading global provider of a new world of communications.

It provides a range of services that includes transmission, IP, converged voice, mobility, managed network connectivity, hosting and storage, managed security, managed collaboration and business transformation for global enterprises and service providers, as

Tata Communication, incorporated in 1986 is part of the $62.5 billion Tata Group.The company, formerly Videsh Sanchar Nigam, was acquired from the Government of India. It is leading global provider of a new world of communications.

It provides a range of services that includes transmission, IP, converged voice, mobility, managed network connectivity, hosting and storage, managed security, managed collaboration and business transformation for global enterprises and service providers, as well as Internet, retail broadband and content services for Indian consumers.

Tata Communications has most advanced & largest submarine cable networks. Its Tier-1 IP network connectivity is spread over 200 countries with 300 Pops (Point-of-Presence).

It provides services to its customer through its offices present in 80 cities spanning across 40 countries. It is number one global wholesale voice operator and number one provider of international long distance, enterprise data and internet services in India.

Tata Communications launched Vulnerability Management Service (VMS) with Qualys , it is built upon Qualys' industry leading QualysGuard vulnerability management and compliance solutions.VMS provides organizations with a cost-efficient and comprehensive method to monitor mitigate and manage risks that threaten the Confidentiality, Integrity and Availability of data assets within the enterprise information infrastructure.

Tata Communications expanded its global MPLS (Multi-Protocol Label Switching) services in South East Asian destinations which includes the Philippines, Malaysia, Taiwan, and Thailand.

In may 2014 the shareholders of Neotel and Vodacom SA announced that they favourably concluded an agreement on the commercial structure and terms to proceed for Vodacom to acquire 100 per cent of the shares of Neotel valued at an enterprise value of ZAR 7.0 billion. Neotel connects the major centres in South Africa to each other and to the world, directly linking its infrastructure into Tata Communications’ global Tier 1 network.

Milestones

Tata Communications won 'Best Market Strategy' at the Capacity magazine Global Wholesale Telecommunications Awards, 2008.

It bagged 'Best Progress in Emerging Markets' at the 2008 Mobile Communication Awards.

It won 'Best Pan-Asian Wholesale Provider' at Capacity Magazine Global Wholesale Telecommunications Awards in year 2006 and 2007 .

Tata Communications was named 'Best Wholesale Carrier' at the World Communications Awards in 2006.

2009 - Global Wholesale Telecommunications Award

2010
Global Wholesale Telecommunications Award
Best Wholesale Carrier

2011
Global Wholesale Telecommunications Award

2012

Frost & Sullivan 2012 India ICT Awards
Enterprise Data Service Provider of the Year
Hosted Contact Center Service Provider of the Year
Third Party Managed Services Provider of the Year

2013

The Forrester WaveTM: Asia Pacific Carrier Ethernet Services, Q4 20132
Tata Communications is positioned as a Leader in this Forrester Wave

The Forrester Waveâ„¢: Managed Global MPLS Services, Q1 20133
Tata Communications is positioned as a Strong Performer in this Forrester Wave

Frost & Sullivan 2013 India ICT Awards
Enterprise Data Service Provider of the Year
Hosted Contact Center Service Provider of the Year
Third Party Managed Services Provider of the Year
Managed Video Conferencing Service Provider of the Year

Frost & Sullivan 2013 Best Practices Awards

2014
Gartner's Magic Quadrant for GLobal Network Service Provider
Tata Communications is positioned in the Leaders Quadrant in this Magic Quadrant

 

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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