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

TATACOMM's revenue projections show a decrease from last year, which tends to make investors more cautious. This could have a negative impact on the company's bottom line, as lower revenues typically suggest reduced profitability and growth potential, prompting concern among investors.

Financial Ratios:

currentRatio 0.457000
forwardPE 25.525766
debtToEquity 467.533000
earningsGrowth -0.194000
revenueGrowth 0.058000
grossMargins 0.280690
operatingMargins 0.081120
trailingEps 50.210000
forwardEps 11.130000

With a current ratio of 0.457, Tata Communications Limited may face challenges covering its short-term liabilities using available cash and assets. This points to potential liquidity concerns, as the company might need to seek alternative financing to meet its near-term debt obligations.
TATACOMM's Forward PE being in a good range suggests that its stock price is aligned well with earnings. The stock is not considered overpriced, offering room for future growth, which makes it an appealing investment opportunity with the potential for value appreciation.
TATACOMM's high debt-to-equity ratio signals significant reliance on debt to finance its operations. This heavy leverage can increase financial risk, especially if the company faces a decline in revenue or struggles to meet its debt obligations.
Tata Communications Limited's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could shrink as a result.
TATACOMM's negative gross and operating margins highlight that the company is incurring losses, unable to generate profit from production or operations. This could be a sign of rising costs or declining revenues, impacting its financial outlook.
TATACOMM's forward EPS is less than its trailing EPS, signaling that the company's profitability is expected to shrink. This points to a potential downturn in earnings compared to last year.

Price projections:

Price projections for TATACOMM
Price projections for TATACOMM

Over time, price projections for TATACOMM have been gradually revised upward, reflecting increasing optimism about the company's future performance. This trend suggests analysts are growing more confident in TATACOMM's ability to deliver strong results and achieve higher market value.

Recommendation changes over time:

Recommendations trend for TATACOMM
Recommendations trend for TATACOMM


A recent buy bias from analysts toward Tata Communications Limited may inspire confidence in investors, who could view the stock as a promising investment. This positive sentiment suggests that Tata Communications Limited might be an appealing option for those looking to grow their wealth through stock market investments.