Tata Communications up 3%, Morgan Stanley overweight with target of Rs 790
The firm believes that the minority shareholders will benefit if VSNL land is demerged.
Shares of Tata Communications advanced nearly 3 percent intraday Friday as global research firm Morgan Stanley maintained overweight rating with a target price of Rs 790 on the stock.
The firm believes that the minority shareholders will benefit if VSNL land is demerged. The VSNL land is valued at Rs 189 per share.
The target will be hiked to Rs 1,071 if the land demerger goes through, report added.
VK Sharma, Head of Business, Private Client Group at HDFC Securities told CNBC-TV18, "I am buying Tata Communications 720 Call at around Rs 14."
"Yesterday, it closed around Rs 16, so I am tempering my buying. I am buying slightly dipper when it dips at Rs 14, stoploss at Rs 14 and a target of around Rs 25."
At 11:21 hrs Tata Communications was quoting at Rs 714, up Rs 8.70, or 1.23 percent on the BSE.
The share price has increased by 41 percent in the last one year.
The share touched its 52-week high Rs 784 and 52-week low Rs 493 on 17 March, 2017 and 14 September, 2016, respectively.
The company's trailing 12-month (TTM) EPS was at Rs 19.91 per share. (Jun, 2017). The stock's price-to-earnings (P/E) ratio was 35.87.Posted by Rakesh Patil