Overall Fundamental outlook

Business Operations:

Sector: Communication Services
Industry: Telecom Services

Tata Communications Limited provides telecommunications services worldwide. The company operates through Voice Solutions, Data and Managed Services, Payment Solutions, Transformation Services, Campaign Registry, and Real Estate segments. It provides voice and data transmission services; internet connectivity services; and other value-added services, such as unified conferencing and collaboration, telepresence, managed hosting, mobile global roaming and signaling, transponder lease, and television up-linking, and other managed services, as well as sells and leases bandwidth on undersea cable systems. The company also offers end-to-end automated teller machines deployment, POS enablement, financial inclusion, card issuance and related managed services, and switching services to banking sector; cyber security; data center colocation services; and network management and support services. In addition, it provides networking services, including managed LAN/WAN, private lines, business internet, hybrid WAN, ethernet, cloud connectivity; cloud communication platform; cloud contact centre solutions; cyber security services, such as security assessment, consulting services, cyber threat detection and response, and networking security; IoT solution and connectivity, enterprise mobility management, mobile virtual network enabler, and sim connectivity; carrier services, such as hosted and managed, wholesale voice transport and termination, and voice access; mobile services; and content delivery network solution, as well as leases premises. It serves service providers and enterprises. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008. Tata Communications Limited was incorporated in 1986 and is based in Mumbai, India.

Revenue projections:

Revenue projections for TATACOMM
Revenue projections for TATACOMM

With Tata Communications Limited's revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.

Financial Ratios:

currentRatio 0.490000
forwardPE 24.231976
debtToEquity 335.485000
earningsGrowth -0.747000
revenueGrowth 0.094000
grossMargins 0.342780
operatingMargins 0.084360
trailingEps 36.570000
forwardEps 81.157230

TATACOMM's current ratio being 0.49 suggests its cash reserves and current assets may not be adequate to cover short-term debt. This raises concerns about liquidity, indicating that TATACOMM might face challenges in meeting its immediate financial commitments.
TATACOMM's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
Tata Communications Limited's high debt-to-equity ratio indicates a strong reliance on debt, meaning the company is heavily leveraged. This could increase financial risks if cash flow or earnings decline, making it more difficult for Tata Communications Limited to manage its debt obligations.
TATACOMM's low earnings and revenue growth point to a likely decrease in profits. This suggests that the company is facing financial difficulties and may struggle to maintain its current level of profitability.
Tata Communications Limited's negative gross and operating margins indicate that the company is currently unprofitable at both the production and operational levels. This suggests significant challenges in managing costs and generating revenue, which could impact its overall financial health.
Tata Communications Limited's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that Tata Communications Limited is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for TATACOMM
Price projections for TATACOMM

The price of TATACOMM has remained consistently close to the lower limit of projections. This ongoing pattern raises concerns about the stock's performance and may reflect market hesitance regarding the company's growth prospects.

Recommendation changes over time:

Recommendations trend for TATACOMM
Recommendations trend for TATACOMM


The analysts' recent buy bias for Tata Communications Limited indicates strong confidence in the stock's future performance. This could encourage more investors to view Tata Communications Limited as a worthwhile investment, positioning the company as a top choice for those seeking financial security and long-term growth opportunities.