Firstcall Research neutral on Tata Comm

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Firstcall Research neutral on Tata Comm

Firstcall Research has maintained neutral rating Tata Communications in its report dated March 08, 2010.

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Firstcall Research has maintained neutral rating Tata Communications in its report dated March 08, 2010.

"Tata Communications reported a phenomenal rise in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company rose 3.48 times to Rs 2,818.00 million from Rs 809.50 million in the same quarter previous year. In spite of large price-cuts and customers discounts, Tata Communications' revenues increased across its voice and data services while most other players in the telecom industry had low single digit growth, if at all."

"During the quarter company expands capabilities in the Media and Entertainment sector with acquisition of BT Group plc's Mosaic Business. Tata Communications and Tomizone join hands to bring a Wi-Fi revolution in the country. At the current market price of Rs 298 the stock is trading at a P/Ex of 24.06x for FY10E and 41.77x for FY11E. The EPS of the stock is expected to be at Rs 12.39 and Rs.7.14 for FY10E and FY11E respectively. We recommend a "NETURAL" on the stock, "says Firstcall Research report.

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To read the full report click on the attachment