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 TATACOMM's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

Financial Ratios:

currentRatio 0.57900
forwardPE 20.42620
debtToEquity 408.60400
earningsGrowth 2.23800
revenueGrowth 0.05200
grossMargins 0.36798
operatingMargins 0.07505
trailingEps 56.98000
forwardEps 11.13000

TATACOMM's current ratio is 0.579, suggesting that its cash reserves and current assets may not be sufficient to cover short-term debts. This indicates potential liquidity challenges, meaning the company might face difficulty meeting its immediate financial obligations without securing additional funds.
TATACOMM's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
TATACOMM's elevated debt-to-equity ratio reflects a high level of debt relative to equity, signaling that the company is heavily leveraged. This reliance on debt could increase financial risk in periods of economic uncertainty.
Tata Communications Limited's forward EPS being lower than its trailing EPS indicates that the company's earnings are projected to decrease. This suggests that Tata Communications Limited may struggle to maintain profitability at previous levels, potentially affecting its financial outlook.

Price projections:

Price projections for TATACOMM
Price projections for TATACOMM

The price of TATACOMM has regularly been close to the lower end of projections, suggesting that it might be struggling to meet market expectations. This trend raises questions about the company's future performance.

Recommendation changes over time:

Recommendations trend for TATACOMM
Recommendations trend for TATACOMM


Analysts are favoring Tata Communications Limited with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider Tata Communications Limited as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.