Jajoo told CNBC-TV18, "Buy on Tata Communications with a target price of Rs 212. Basically Tata Comm which was erstwhile on its VSNL was acquired by Tata group in 2003, the land was not supposed to come to Tata Group and the valuation of land which has taken place recently after so many years, value is pegged at close to Rs 6000 crore."
He further added, "However there was dispute with regard to the transfer charges as to when this land will get hived off into a separate company the stamp duty in excess of Rs 400 crore to be borne by which entity. As a result of which the true valuations probably were not getting captured in the present share price after the recent announcement, we feel that if one considers the market cap of Tata Communications at Rs 6000 crore and the enterprise value at close to Rs 17000-18000 crore, the value unlocking at 5 locations of this land probably should provide a significant upside to the stock in the short to medium term. We expect the stock to touch Rs 212 during the day."
