Buy Tata Communications; target of Rs 775: Motilal Oswal
Motilal Oswal is bullish on Tata Communications has recommended buy rating on the stock with a target price of Rs 775 in its research report dated July 25, 2017
July 28, 2017 / 01:19 PM IST
Motilal Oswal's research report on Tata Communications
Core revenue increased 0.4% QoQ ( -3.3% Yo Y) to INR43.1b ( marginal beat) .Core EBITDA rose 12 .6% QoQ ( -15.6% Yo Y) to INR5.6b ( in-line ). PAT stood a t INR 329m. Data r even ue was flat Q oQ ( +4.6% YoY) at I NR27.8b ( in -line). Data EBITDA increased 2 3% QoQ ( -14.9% YoY) to INR4.7b ( in -line) , with the margin expanding 330bp QoQ ( - 390bp YoY) to 17% . Traditional EBITDA grew 18% QoQ to IN R5.7b. Voice EBITDA fell 22.7%/19.1% Q oQ/YoY to INR876m.
Assuming INR176/share o f l and value, the stock trades attractively at ~6x on FY19E. EBITDA revision le ads us to reduce the target p rice by 4% to INR775 (excluding land bank). Maintaining Buy.
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