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 indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

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 being 0.579 suggests that its cash reserves and current assets may not fully cover its short-term debts. This points to potential liquidity problems and could indicate that the company may need to secure additional funds to meet its obligations.
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 suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
Tata Communications Limited'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 price of TATACOMM has repeatedly been close to the lower limit of price projections. This trend suggests that the stock may be underperforming, raising concerns among investors about future performance.

Recommendation changes over time:

Recommendations trend for TATACOMM
Recommendations trend for TATACOMM


The recent buy bias from analysts suggests TATACOMM is seen as a strong investment, encouraging more investors to consider it. With this favorable sentiment, TATACOMM appears to be a reliable option for parking money, offering stability and long-term growth potential in the stock market.