ScoreWhy is Tata Communications Ltd ?
1
High Management Efficiency with a high ROCE of 18.13%
2
High Debt Company with a Debt to Equity ratio (avg) of 5.12 times
- Poor long term growth as Operating profit has grown by an annual rate 0.50% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) of 5.12 times
3
Poor long term growth as Operating profit has grown by an annual rate 0.50% of over the last 5 years
4
Positive results in Mar 26
- OPERATING PROFIT TO INTEREST(Q) Highest at 7.07 times
- PBDIT(Q) Highest at Rs 1,283.93 cr.
- DEBT-EQUITY RATIO(HY) Lowest at 3.55 times
5
With ROCE of 13.6, it has a Attractive valuation with a 3.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 6.11%, its profits have risen by 0.8% ; the PEG ratio of the company is 40.6
6
High Institutional Holdings at 33.57%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.62% over the previous quarter.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tata Comm should be less than 10%
- Overall Portfolio exposure to Telecom - Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tata Comm for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Tata Comm
6.11%
0.20
29.94%
Sensex
-3.74%
-0.28
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.72%
EBIT Growth (5y)
0.50%
EBIT to Interest (avg)
3.71
Debt to EBITDA (avg)
2.43
Net Debt to Equity (avg)
3.27
Sales to Capital Employed (avg)
1.63
Tax Ratio
30.02%
Dividend Payout Ratio
38.80%
Pledged Shares
0
Institutional Holding
33.57%
ROCE (avg)
18.25%
ROE (avg)
81.17%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
41
Industry P/E
37
Price to Book Value
13.10
EV to EBIT
28.28
EV to EBITDA
11.70
EV to Capital Employed
3.84
EV to Sales
2.28
PEG Ratio
40.60
Dividend Yield
1.58%
ROCE (Latest)
13.57%
ROE (Latest)
32.27%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 7.07 times
PBDIT(Q)
Highest at Rs 1,283.93 cr.
DEBT-EQUITY RATIO(HY)
Lowest at 3.55 times
DEBTORS TURNOVER RATIO(HY)
Highest at 5.95 times
NET SALES(Q)
Highest at Rs 6,554.15 cr
PBT LESS OI(Q)
Highest at Rs 371.25 cr.
-2What is not working for the Company
PAT(Q)
At Rs 251.54 cr has Fallen at -16.8% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Tata Comm
Operating Profit to Interest - Quarterly
Highest at 7.07 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 1,283.93 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 371.25 cr has Grown at 66.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 223.22 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 6,554.15 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 371.25 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 3.55 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 5.95 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Tata Comm
Profit After Tax (PAT) - Quarterly
At Rs 251.54 cr has Fallen at -16.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 302.30 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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