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

Tata Communications Limited's revenues are expected to fall below last year's, and this forecast tends to raise concerns among investors. A revenue drop can negatively impact the company's profitability, making investors more cautious about their positions due to the risks of declining financial performance.

Financial Ratios:

currentRatio 0.579000
forwardPE 21.016937
debtToEquity 409.130000
earningsGrowth 2.238000
revenueGrowth 0.052000
grossMargins 0.292840
operatingMargins 0.075050
trailingEps 56.910000
forwardEps 11.130000

Tata Communications Limited's current ratio being 0.579 suggests its cash reserves and current assets may not be adequate to cover short-term debt. This raises concerns about liquidity, indicating that Tata Communications Limited might face challenges in meeting its immediate financial commitments.
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 high debt-to-equity ratio points to a heavily leveraged company, with more debt than equity in its capital structure. While this can boost growth, it increases financial vulnerability in times of economic difficulty.
TATACOMM's forward EPS being lower than its trailing EPS suggests the company is expected to see reduced profitability in the current financial year compared to the previous one. This signals a potential decline in earnings, raising concerns about future financial performance.

Price projections:

Price projections for TATACOMM
Price projections for TATACOMM

The stock price of Tata Communications Limited has frequently been close to the lower end of analysts' projections. This trend indicates potential struggles for the company in achieving the growth anticipated by the market.

Recommendation changes over time:

Recommendations trend for TATACOMM
Recommendations trend for TATACOMM


Analysts' buy bias toward Tata Communications Limited suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, Tata Communications Limited is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.