Tata Communications Ltd Stock Analysis

BSE: 500483 | NSE: TATACOMM | Telecommunication - Service Provider | Mid Cap

BSE Share Price 22-Sep-2023 18:01
1876.50 0.65 (0.03%)

DeciZen - Make an Informed Decision on Tata Communications

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Tata Communications Price Chart

P/E Ratio ( CD) :
32.72
Market Cap :
53,461.7 Cr.
52-wk low :
1,095.1
52-wk high :
1,956.9
Bole Toh?

1. Is Tata Communications Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Tata Communications Ltd is a good quality company.

2. Is Tata Communications Ltd undervalued or overvalued?

The key valuation ratios of Tata Communications Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Tata Communications Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Tata Communications Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Tata Communications:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 2%3.7%4.3%18.1%2.2%2.2%3%16.2%17.9%22.7%-
Value Creation Index -0.9-0.7-0.70.6-0.8NANA0.40.61.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 17,71419,91318,14917,62016,77216,52517,06817,10016,72517,83818,299
YoY Gr. Rt. %-12.4%-8.9%-2.9%-4.8%-1.5%3.3%0.2%-2.2%6.7%-
Adj EPS -0.7-0.610.569.5-0.7-2.4-1.645.150.560.757.3
YoY Gr. Rt. %-NANA562%-101.1%NANANA12%20.2%-
BVPS (₹) 28.111.3-12.855.917.5-6.4-44.94.132.653.366.4
Adj Net Profit -20.4-15.62991,981-20.9-66.9-461,2851,4401,7311,634
Cash Flow from Ops. 3,0623,0282,3632,3941,7131,8442,5253,1804,2044,384-
Debt/CF from Ops. 4.54.363.95.25.44.33.11.91.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 0.1%1.2%1.5%6.7%
Adj EPS NANANA20.2%
BVPS7.4%24.9%NA63.7%
Share Price 26% 30.2% 32.6% 55.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on Equity % -1.8-2.8-1428.6322.5-2-42.16.3-221.1276141.595.8
Op. Profit Mgn % 13.71511.613.714.416.619.324.925.22423.3
Net Profit Mgn % -0.1-0.11.711.2-00.5-0.37.58.69.58.9
Debt to Equity 17.140.7-39.25.817.9-54.6-8.486.38.55-
Working Cap Days 1842111731221251271291271191070
Cash Conv. Cycle -32-33-28-26-27-26-26-29-26-220

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 95.80%

Debt to equity has declined versus last 3 years average to 4.96

Sales growth has been subdued in last 3 years 1.48%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 8.06%

Latest Financials - Tata Communications Ltd.

Standalone Consolidated
TTM EPS (₹) 22.3 57.3
TTM Sales (₹ Cr.) 7,491 18,299
BVPS (₹.) 357.5 66.4
Reserves (₹ Cr.) 9,904 1,607
P/BV 5.25 28.26
PE 84.23 32.72
From the Market
52 Week Low / High (₹) 1095.05 / 1956.85
All Time Low / High (₹) 68.00 / 1956.85
Market Cap (₹ Cr.) 53,462
Equity (₹ Cr.) 285
Face Value (₹) 10
Industry PE 152.1

Management X-Ray of Tata Communications :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *4.964.964.964.964.964.964.964.964.964.96
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Tata Communications

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Tata Communications Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Tata Communications on 22-Sep-2023 18:01 is : 1,876.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 22-Sep-2023 18:01 the market cap of Tata Communications stood at ₹ 53,461.7.
The latest PE ratio of Tata Communications as of 22-Sep-2023 18:01 is 84.23.
The latest PB ratio of Tata Communications as of 22-Sep-2023 18:01 is 5.25
The 52-week high of Tata Communications is ₹ 1,956.9 and the 52-week low is ₹ 1,095.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Tata Communications is ₹ 7,491 ( Cr.) .

About Tata Communications Ltd

Tata Communication, incorporated in 1986 is part of the $62.5 billion Tata Group. The company, formerly Videsh Sanchar Nigam (VSNL), 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. Tata Communications is listed on the Bombay Stock Exchange and the National Stock Exchange of India.

Business area of the company

Tata Communications is a digital ecosystem enabler that powers today’s fast-growing digital economy.

Products & Solutions

  • Network
  • Cloud
  • Security
  • Mobility & IoT
  • Unified Communications
  • Carrier Services
  • Media & Entertainment
  • Content Delivery Network
  • Resources

Awards

2000-01

  • VSNL received the best ISP award from PC Quest magazine in 2000

2003-04

  • VSNL has received various other awards and certifications including the ‘Top International long distance (ILD) Operator’ and the ‘Top Internet Service Provider’ awards at the Voice & Data 100 annual awards.

2006-07

  • World Communications Awards, 2006 - LONDON
  • TelecomAsia Awards, 2006 - PHUKET
  • 2006 Global Wholesale Telecommunications Awards - AMSTERDAM

2007-08

  • Atlantic ACM Excellence in Wholesale 2008.
  • Frost & Sullivan #1 Enterprise Data Services Provider in India 2007
  • Best Wholesale Carrier at the Telecom World Middle East 2007
  • Best Pan-Asian Wholesale Provider at the Capacity Global Awards 2007
  • Telecom magazine Tele.net’s award for Best Long Distance Operator
  • Tele.net’s award for the Best Internet and Broadband Operator

2008-09

  • Global Telecoms Business Innovation Award for International Wholesale Infrastructure Transformation and International Network Infrastructure Transformation
  • 2008 Telephony Award for Most Innovative Managed Service
  • Best Market Strategy at 2008 Global Wholesale Telecommunications Awards
  • Frost & Sullivan #1 Enterprise Data Services Provider in India 2008

2009-10

  • Best Global Wholesale Offering Award from Capacity magazine, one of the most important publications for telecommunications carriers and service providers
  • Global Telecoms Business Innovation Award for International Wholesale Infrastructure Transformation and International Network Infrastructure Transformation
  • European CEO announced Tata Communications as Telepresence Managed Service Provider of the Year 2009
  • Frost & Sullivan named the Company 1 Enterprise Data Services Provider in India 2009
  • In March 2010, Tata Communications entered the Gartner’s Magic Quadrant for Global Network Service Providers.
  • Frost & Sullivan’s 2009 Product Innovation award for Managed Telepresence Service.
  • “Best service coverage” in the 2009 Optical Transmission Vision (OTV) APAC Network Operator Awards

2010-11

  • ‘Top international long distance operator’ award from Voice & Data magazine in India, consecutively for the 9th successive year since 2001 (India)
  • ‘Best global wholesale offering’ award from Capacity magazine, a global publication for telecommunications carriers and service providers
  • ‘Telepresence managed service provider of the year’ at the European CEO 2010 Awards
  • ‘Service provider of the year’ in enterprise data services and hosted contact centre services at the Frost & Sullivan 2011 India IT & Telecom Excellence Awards
  • ‘Best service provider of the year, APAC’; and ‘best ethernet wholesale service, APAC’ at the 2010 MEF
    Awards
  • ‘APAC service provider of the year 2011 (Ethernet and telepresence)’ at the Cisco Partner Summit 2011
  • ‘Best long distance operator (India)’ at the Tele.net Telecom Operator Awards 2011.

2011-12

  • Hosted Contact Center Service Provider of the Year by Frost & Sullivan 2011 India IT & Telecom Excellence Awards
  • Enterprise Data Service Provider of the Year by Frost & Sullivan 2011 India IT & Telecom Excellence Awards
  • IPX+ framework is ranked third (tied) in innovation across all aspects of the wholesale telecom business, first in terms of go-to-market strategy in Ovum’s Wholesale Innovation Analyzer 2011
  • Global Wholesale Telecommunications Award - Capacity Awards 2011; Best Global Offering
  • Best Long Distance Operator (India) Tele.net Telecom Operator Awards 2011
  • Best Wholesale International Telecom Asia Award 2011
  • Best APAC Wholesale Ethernet Service, APAC 2011 - MEF Carrier Ethernet Service Provider Awards 2011
  • Best Business Service, APAC 2011 - MEF Carrier Ethernet Service Provider Awards 2011
  • APAC Service Provider of the Year 2011 (Ethernet and Telepresence) - Cisco Partner Summit 2011

2012-13

  • Tata Communications won the Best Asian Wholesale Carrier Award at the 2012 Capacity Awards, which recognize wholesale players who have established themselves at the forefront of the wholesale telecom industry by applying innovative processes and strategies.

2014-15

  • Gartner’s Magic Quadrant for Network Services, Global
  • Frost & Sullivan 2015 Best Practices Award - India ICT Awards
  • Frost & Sullivan 2014 Asia Pacific ICT Award
  • 2014 Frost & Sullivan Best Practices Awards
  • Frost & Sullivan 2014 India ICT Awards

2015-16

  • A 2016 Best Employer in India by Aon Hewitt
  • Gartner’s Magic Quadrant for Network Services, Global
  • Frost & Sullivan 2016 Best Practices Award - India ICT Awards

2016-17

  • Gartner’s Magic Quadrant for Network Services, Global
  • A 2017 Best Employer in India and Hong Kong by Aon Hewitt
  • Ranked 19th in the Top 25 companies in India (2017) -– Linkedin
  • Certified as Great Place to Work in India (2017) - Great Place to Work Institute

2017-18

  • Gartner Magic Quadrant for Network Services, Global, 2018
  • Gartner Magic Quadrant for Managed Hybrid Cloud Hosting, Asia / Pacific, 2017
  • 2017 Frost & Sullivan India Digital Transformation Awards
  • NetFoundry clinched the IoT & Cloud Innovation Award Innovation Leader – IoT
  • Managed UC Services Provider of the Year (second year running)
  • TechXLR8 Asia Awards 2017
  • Ovum Industry Congress On The Radar Awards 2017 – Internet of Things
  • MEF 2017 Awards

2018-19

  • Certified a Great Place to Work in Canada, Greater China, India, Hong Kong and Singapore, ranking high as an equal opportunities employer, with inclusive workplace policies and a high-trust, high performance culture
  • Tata Communications is positioned in the top percentile of NPS, amongst the best in the industry
  • Stevie Awards Bronze (for sales and customer service)
  • Leader in Gartner’s 2019 Magic Quadrant for Network Services, Global
  • Aon Best Employers, India 2018 for third year in a row and in Hong Kong for the second consecutive year
  • CX Strategy Summit & Awards - Best Customer Experience 
  • Clarabridge Customer Experience Innovation Award
  • Major Player in the IDC MarketScape: Asia/Pacific Managed Security Services 2018 Vendor Assessment
  • People Matters Total Rewards as ‘Best in Employee Volunteering’
  • Telecom Review Summit - Best Customer Service Provider
  • Customer Fest Show- CX Leader of the Year Award
  • Positioned in the Forrester Wave, Managed Security Services in Asia Pacific, Q1 2019
  • Three MEF 2018 Awards: Wholesale Service Provider of the Year- APAC; Enterprise Application of the Year – Financial and Enterprise Application of the Year – Retail
  • NetEvents 2018 IoT & Cloud Innovation Award: Innovation Leader: IoT
  • Cisco Partner Summit 2018 Awards: Software Partner of the Year
  • MEF Awards - Proof of Concept: MEF 3.0 Implementation; MEF 3.0 Inter-carrier servicer for Automated Discovery and Blockchain Settlement
  • 2019 Frost & Sullivan Best Practices Awards - Asia Pacific: Managed UC Services Provider of the Year (third year running)
  • TechXLR8 Asia Awards 2018: Best IoT Partnership 
  • Two Carriers World Awards: Best IoT initiative and Best IPX Service Provider
  • 2019 Frost & Sullivan Best Practices Awards: Global Hybrid Cloud Services Product Line Strategy Leadership Award and Sub Saharan African IoT MVNO Visionary Innovation Leadership Award
  • Six awards at the Frost & Sullivan 2018 India ICT Awards Telecom Asia Readers’ Choice awards: IoT/M2M Solution Innovation of the Year

2019-20

  • F&S Managed Multi Cloud Service Provider of the Year 2019
  • F&S Cloud Interconnect Service Provider of the Year Award
  • F&S 2019 Unified Communications Service Provider of the Year
  • F&S 2019 Managed Video Services Company of the Year
  • F&S 2019 Enterprise SIP Trunking Service Provider of the Year
  • F&S 2019 AsiaPacific Managed UC Service Provider of the Year
  • F&S 2019 SDWAN Service Provider of the Year
  • F&S 2019 AsiaPacific Managed SDWAN Service Provider of the Year Award
  • Everest Network Transformation & Managed Services Peak
  • MEF SD-WAN Provider Of The Year - APAC Gartner Magic Quadrant for Network Services, Global F&S Managed Security Services Provider of the Year (Telco)
  • CX Vendor Excellence Asia 2019 Award
  • Customer Experience Leader of the Year 2019
  • IHS Markit (Omdia) Leader in CDN Vendor Scorecard CCW Asia Excellence awards- Bronze award for Best Customer Service

Milestones

  • 2004: VSNL became the first telecom service provider globally to achieve TL 9000 – Quality Management System Certification, a set of quality system requirements and metrics designed specifically for the telecom industry, encompassing ISO 9001 and other best practices.
  • 2004: the Company launched calling cards, an important avenue to raise call volumes.
  • 2004: VSNL established an intelligent network (IN) platform that allows multiple IN services
  • 2005: VSNL has built Tata Indicom India Singapore Cable System and acquired Tyco Global Network
  • 2006: The Company acquired Tata Power Broadband, now known as VSNL Broadband Limited, having about 1000 kilometres of optical fibre infrastructure in Mumbai and Pune; acquired the assets of 7 Star.com Pvt. Limited, a suburban cable operator in Mumbai offering broadband services and acquired Direct Internet Limited which provides internet and related services predominantly to small and medium sector enterprise customers
  • 2007: VSNL acquired two entities in India, Direct Internet Limited (DIL) and VSNL Internet Services Limited (VISL).
  • 2010-11: Company has launched the world’s leading dedicated global video network called Video Connect, which is designed to help broadcasters, studios and production houses deliver video content flexibly and cost-effectively to media hotspots worldwide.
  • 2011-2012: the Company has launched a Web Based Training Module on the Tata Code of Conduct available to all its employees globally.
  • 2012-13: the Company launched a subsea cable system connecting several countries in the Middle East to Mumbai, India
  • 2015-16: Tata Communications Group launched the IZOTM Private Cloud service to bring to CIOs unprecedented control over their public and private clouds and entire data centre sphere.
  • 2016-17: Tata Communications Group launched the latest addition to its IZO Cloud Enablement Platform called IZO SDWAN, SDWAN standing for Software Defined Wide Area Networking.
  • 2017-18: The company launched three IZOTM Private Cloud nodes in Germany, the UAE and in Malaysia.
  • 2018-19: the company acquired 31,960 cumulative non-convertible Redeemable preferance share of smart ICT Private Limited.
  • 2019-20: The Group through its wholly owned subsidiary, Tata Communications (Netherlands) BV acquired an additional ownership interest in Teleena Holdings (B.V) (Teleena) of 64.64% for a cash consideration of Rs 105.40 crore.
  • 2021: Tata Communications announced its partnership with Google Cloud to drive cloud adoption and transform Indian businesses.
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