Moneycontrol PRO

Neutral Tata Communications; target of Rs 1100: Motilal Oswal

Motilal Oswal recommended Neutral rating on Tata Communications with a target price of Rs 1100 in its research report dated July 22, 2022.

July 24, 2022 / 01:07 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on Tata Communications


TCOM’s consolidated EBITDA grew 3%, led by a 63% jump in Voice EBITDA, even as Data EBITDA, the key valuation driver, remained muted. FCF remained strong, coupled with a healthy 9% deleveraging of INR6b. We have marginally reduced our consolidated EBITDA, factoring in 13% CAGR over FY22-24 and reduction in losses in the Incubation segment over time, even as the Digital Platform and Services has seen modest growth in the last couple of years. FCF generation and deleveraging remains the silver lining, aiding valuation.



Outlook


We maintain our Neutral rating. We maintain our Neutral rating with a TP of INR1,100/share (assigned 7.5x/3x EBITDA to the Data/Voice business).


More Info

Close

At 17:30 Tata Communications was quoting at Rs 1,058.50, down Rs 19.10, or 1.77 percent.


It has touched an intraday high of Rs 1,092.35 and an intraday low of Rs 1,047.00.


It was trading with volumes of 109,525 shares, compared to its thirty day average of 49,023 shares, an increase of 123.42 percent.


In the previous trading session, the share closed up 9.99 percent or Rs 97.90 at Rs 1,077.60.


The share touched its 52-week high Rs 1,590.00 and 52-week low Rs 856.00 on 17 January, 2022 and 15 June, 2022, respectively.


Currently, it is trading 33.43 percent below its 52-week high and 23.66 percent above its 52-week low.


Market capitalisation stands at Rs 30,167.25 crore.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Tata Communications - 220722 - moti

Broker Research
first published: Jul 24, 2022 01:07 pm
Sections
ISO 27001 - BSI Assurance Mark