Tata Communications Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: March 13, 2025, 3:30 pm

Market Cap	42,918 Cr.
Current Price	1,506
High / Low	2,175/1,291
Stock P/E	38.6
Book Value	62.4
Dividend Yield	1.13 %
ROCE	17.6 %
ROE	65.2 %
Face Value	10.0
PEG Ratio	-17.31

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Tata Communications Ltd

Competitors of Tata Communications Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
City Online Services Ltd	3.26 Cr.	6.32	11.0/4.15	9.59	0.56	0.00 %	24.4 %	%	10.0
Cistro Telelink Ltd	4.06 Cr.	0.79	0.79/0.56		0.55	0.00 %	0.54 %	0.54 %	1.00
Vodafone Idea Ltd	50,261 Cr.	7.04	19.2/6.60		13.7	0.00 %	3.61 %	%	10.0
Uniinfo Telecom Services Ltd	19.7 Cr.	18.4	54.3/17.9		30.7	0.00 %	2.87 %	1.89 %	10.0
Tejas Networks Ltd	11,773 Cr.	669	1,495/651	17.7	212	0.00 %	3.68 %	2.06 %	10.0
Industry Average	122,030.33 Cr	310.03		26.48	135.73	0.12%	11.75%	12.69%	8.54

All Competitor Stocks of Tata Communications Ltd

Quarterly Result

Metric	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024
Sales	4,185	4,263	4,311	4,431	4,528	4,569	4,771	4,872	5,588	5,692	5,633	5,728	5,798
Expenses	3,102	3,218	3,233	3,301	3,451	3,534	3,747	3,857	4,435	4,635	4,509	4,598	4,617
Operating Profit	1,082	1,045	1,077	1,130	1,077	1,034	1,024	1,015	1,153	1,056	1,124	1,129	1,181
OPM %	26%	25%	25%	26%	24%	23%	21%	21%	21%	19%	20%	20%	20%
Other Income	27	243	234	113	31	62	191	25	-212	5	112	29	-7
Interest	83	90	80	98	123	132	131	137	184	188	172	189	187
Depreciation	542	589	537	552	555	618	580	605	603	666	647	648	637
Profit before tax	484	609	694	593	431	345	504	298	154	207	417	321	350
Tax %	20%	40%	23%	11%	10%	8%	26%	26%	74%	-52%	21%	30%	36%
Net Profit	393	369	545	534	395	327	382	221	45	322	333	227	236
EPS in Rs	13.87	12.81	19.08	18.68	13.82	11.44	13.39	7.74	1.57	11.27	11.68	7.97	8.28

Last Updated: February 28, 2025, 8:01 pm

Below is a detailed analysis of the quarterly data for Tata Communications Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

For Sales, as of Dec 2024, the value is ₹5,798.00 Cr.. The value appears strong and on an upward trend. It has increased from 5,728.00 Cr. (Sep 2024) to ₹5,798.00 Cr., marking an increase of ₹70.00 Cr..
For Expenses, as of Dec 2024, the value is ₹4,617.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 4,598.00 Cr. (Sep 2024) to ₹4,617.00 Cr., marking an increase of ₹19.00 Cr..
For Operating Profit, as of Dec 2024, the value is ₹1,181.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,129.00 Cr. (Sep 2024) to ₹1,181.00 Cr., marking an increase of ₹52.00 Cr..
For OPM %, as of Dec 2024, the value is 20.00%. The value remains steady. There is no change compared to the previous period (Sep 2024) which recorded 20.00%.
For Other Income, as of Dec 2024, the value is ₹-7.00 Cr.. The value appears to be declining and may need further review. It has decreased from 29.00 Cr. (Sep 2024) to ₹-7.00 Cr., marking a decrease of 36.00 Cr..
For Interest, as of Dec 2024, the value is ₹187.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 189.00 Cr. (Sep 2024) to ₹187.00 Cr., marking a decrease of 2.00 Cr..
For Depreciation, as of Dec 2024, the value is ₹637.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 648.00 Cr. (Sep 2024) to ₹637.00 Cr., marking a decrease of 11.00 Cr..
For Profit before tax, as of Dec 2024, the value is ₹350.00 Cr.. The value appears strong and on an upward trend. It has increased from 321.00 Cr. (Sep 2024) to ₹350.00 Cr., marking an increase of ₹29.00 Cr..
For Tax %, as of Dec 2024, the value is 36.00%. The value appears to be increasing, which may not be favorable. It has increased from 30.00% (Sep 2024) to 36.00%, marking an increase of 6.00%.
For Net Profit, as of Dec 2024, the value is ₹236.00 Cr.. The value appears strong and on an upward trend. It has increased from 227.00 Cr. (Sep 2024) to ₹236.00 Cr., marking an increase of ₹9.00 Cr..
For EPS in Rs, as of Dec 2024, the value is 8.28. The value appears strong and on an upward trend. It has increased from ₹7.97 (Sep 2024) to 8.28, marking an increase of 0.31.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 6, 2025, 4:20 pm

Metric	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	17,213	17,714	19,913	18,149	17,620	16,772	16,525	17,068	17,100	16,725	17,838	20,969	22,851
Expenses	15,153	15,708	16,919	15,714	15,214	14,359	13,780	13,779	12,840	12,498	13,520	16,739	18,360
Operating Profit	2,060	2,006	2,994	2,434	2,406	2,412	2,745	3,289	4,261	4,227	4,318	4,230	4,491
OPM %	12%	11%	15%	13%	14%	14%	17%	19%	25%	25%	24%	20%	20%
Other Income	331	717	291	82	1,294	-116	62	-321	82	338	440	47	139
Interest	794	427	751	409	367	344	397	471	420	360	432	644	737
Depreciation	2,027	1,852	2,161	1,864	1,866	1,906	2,068	2,358	2,314	2,205	2,262	2,470	2,599
Profit before tax	-431	444	373	243	1,467	46	343	140	1,609	2,000	2,063	1,163	1,295
Tax %	51%	77%	99%	96%	16%	778%	80%	162%	22%	26%	14%	18%
Net Profit	-651	103	3	10	1,235	-326	-80	-85	1,252	1,485	1,801	970	1,118
EPS in Rs	-21.87	3.56	0.05	0.30	43.26	-11.53	-2.89	-3.02	43.88	51.99	63.02	33.98	39.20
Dividend Payout %	-14%	126%	12,151%	1,412%	14%	-39%	-156%	-133%	32%	40%	33%	49%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	115.82%	-97.09%	233.33%	12250.00%	-126.40%	75.46%	-6.25%	1572.94%	18.61%	21.28%	-46.14%
Change in YoY Net Profit Growth (%)	0.00%	-212.91%	330.42%	12016.67%	-12376.40%	201.86%	-81.71%	1579.19%	-1554.33%	2.67%	-67.42%

Tata Communications Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	2%
5 Years:	5%
3 Years:	7%
TTM:	15%

Compounded Profit Growth
10 Years:	30%
5 Years:	73%
3 Years:	-5%
TTM:	17%

Stock Price CAGR
10 Years:	19%
5 Years:	43%
3 Years:	9%
1 Year:	-20%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	126%
Last Year:	65%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:32 am

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	285	285	285	285	285	285	285	285	285	285	285	285	285
Reserves	1,140	515	36	-648	1,307	214	-467	-1,563	-170	643	1,233	1,501	1,493
Borrowings	12,362	13,694	13,076	14,231	9,214	8,927	9,935	12,413	11,394	9,122	8,577	11,263	12,420
Other Liabilities	10,041	10,456	10,798	11,230	10,228	10,131	10,198	10,996	9,797	9,588	10,424	11,316	11,019
Total Liabilities	23,828	24,950	24,195	25,098	21,033	19,557	19,951	22,131	21,306	19,638	20,519	24,365	25,217
Fixed Assets	14,711	14,914	14,704	14,444	10,929	10,797	11,289	12,768	11,520	10,936	10,500	13,467	13,422
CWIP	771	653	638	800	751	520	361	349	493	852	1,148	1,327	1,099
Investments	1,322	1,758	1,768	1,837	2,434	1,250	1,491	1,563	2,233	1,565	1,951	1,608	1,739
Other Assets	7,024	7,625	7,086	8,017	6,920	6,990	6,809	7,451	7,060	6,284	6,921	7,963	8,957
Total Assets	23,828	24,950	24,195	25,098	21,033	19,557	19,951	22,131	21,306	19,638	20,519	24,365	25,217

Below is a detailed analysis of the balance sheet data for Tata Communications Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

For Equity Capital, as of Sep 2024, the value is ₹285.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded ₹285.00 Cr..
For Reserves, as of Sep 2024, the value is ₹1,493.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹1,501.00 Cr. (Mar 2024) to ₹1,493.00 Cr., marking a decrease of 8.00 Cr..
For Borrowings, as of Sep 2024, the value is ₹12,420.00 Cr.. The value appears to be increasing, which may not be favorable. However, Borrowings exceed Reserves, which may signal higher financial risk. It has increased from ₹11,263.00 Cr. (Mar 2024) to ₹12,420.00 Cr., marking an increase of 1,157.00 Cr..
For Other Liabilities, as of Sep 2024, the value is ₹11,019.00 Cr.. The value appears to be improving (decreasing). It has decreased from ₹11,316.00 Cr. (Mar 2024) to ₹11,019.00 Cr., marking a decrease of 297.00 Cr..
For Total Liabilities, as of Sep 2024, the value is ₹25,217.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹24,365.00 Cr. (Mar 2024) to ₹25,217.00 Cr., marking an increase of 852.00 Cr..
For Fixed Assets, as of Sep 2024, the value is ₹13,422.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹13,467.00 Cr. (Mar 2024) to ₹13,422.00 Cr., marking a decrease of 45.00 Cr..
For CWIP, as of Sep 2024, the value is ₹1,099.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹1,327.00 Cr. (Mar 2024) to ₹1,099.00 Cr., marking a decrease of 228.00 Cr..
For Investments, as of Sep 2024, the value is ₹1,739.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹1,608.00 Cr. (Mar 2024) to ₹1,739.00 Cr., marking an increase of 131.00 Cr..
For Other Assets, as of Sep 2024, the value is ₹8,957.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹7,963.00 Cr. (Mar 2024) to ₹8,957.00 Cr., marking an increase of 994.00 Cr..
For Total Assets, as of Sep 2024, the value is ₹25,217.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹24,365.00 Cr. (Mar 2024) to ₹25,217.00 Cr., marking an increase of 852.00 Cr..

However, the Borrowings (12,420.00 Cr.) are higher than the Reserves (₹1,493.00 Cr.), which may signal higher financial risk.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	2,455	3,062	3,028	2,363	2,394	1,713	1,844	2,525	3,180	4,204	4,384	3,182
Cash from Investing Activity +	-2,481	-2,280	-1,908	-2,313	940	-500	-2,284	-1,521	-2,007	-894	-1,836	-2,641
Cash from Financing Activity +	320	-186	-1,388	-9	-3,276	-959	-28	-942	-1,205	-3,431	-2,241	-813
Net Cash Flow	293	596	-268	41	58	254	-467	61	-32	-121	308	-272

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-10.00	-11.00	-11.00	-12.00	-7.00	-6.00	-7.00	-9.00	-7.00	-5.00	-4.00	-7.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	67	56	46	61	54	64	66	69	56	56	56	65
Inventory Days
Days Payable
Cash Conversion Cycle	67	56	46	61	54	64	66	69	56	56	56	65
Working Capital Days	-88	-88	-124	-93	-73	-86	-71	-94	-59	-56	-61	-52
ROCE %	2%	4%	8%	7%	23%	8%	8%	9%	18%	22%	24%	18%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	58.86%	58.86%	58.86%	58.86%	58.86%	58.86%	58.86%	58.86%	58.86%	58.86%	58.86%	58.86%
FIIs	21.57%	19.38%	17.88%	17.02%	17.28%	16.99%	17.18%	17.53%	19.20%	18.24%	18.09%	18.06%
DIIs	8.85%	11.49%	12.93%	13.89%	13.92%	14.02%	14.07%	13.55%	12.12%	13.14%	13.15%	13.45%
Public	10.72%	10.26%	10.33%	10.22%	9.92%	10.11%	9.88%	10.06%	9.81%	9.77%	9.91%	9.62%
No. of Shareholders	1,19,487	1,44,979	1,74,948	1,75,017	1,66,116	1,82,940	1,70,857	1,85,976	1,95,698	1,93,157	2,03,417	1,85,024

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan	9,642,272	3.35	1603.75	1,739,986	2025-03-11	454.16%
Axis Midcap Fund	2,198,444	1.66	365.66	1,739,986	2025-03-11	26.35%
Mirae Asset Emerging Bluechip Fund	2,069,620	1.22	344.23	1,739,986	2025-03-11	18.94%
Mirae Asset Midcap Fund	1,739,986	2.46	289.4	1,739,986	2025-03-11	0%
Kotak Equity Arbitrage Fund - Regular Plan	1,051,000	0.6	174.81	1,739,986	2025-03-11	-39.6%
HSBC Midcap Fund	841,900	1.75	140.03	1,739,986	2025-03-11	-51.61%
Quant Mid Cap Fund	739,077	3.76	122.93	1,739,986	2025-03-11	-57.52%
Invesco India Arbitrage Fund	697,000	1.34	115.93	1,739,986	2025-03-11	-59.94%
HDFC Large and Mid Cap Fund - Regular Plan	602,722	0.84	100.25	1,739,986	2025-03-11	-65.36%
Tata Large & Mid Cap Fund - Regular Plan	600,000	1.9	99.8	1,739,986	2025-03-11	-65.52%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	33.98	63.02	51.99	43.88	-3.02
Diluted EPS (Rs.)	33.97	63.02	51.99	43.88	-3.02
Cash EPS (Rs.)	119.97	141.36	129.21	125.18	79.67
Book Value[Excl.RevalReserv]/Share (Rs.)	62.82	54.34	33.55	5.04	-44.69
Book Value[Incl.RevalReserv]/Share (Rs.)	62.82	54.34	33.55	5.04	-44.69
Revenue From Operations / Share (Rs.)	735.75	625.90	586.83	600.00	598.88
PBDIT / Share (Rs.)	158.34	164.26	159.96	154.99	117.85
PBIT / Share (Rs.)	71.68	84.90	82.61	73.81	35.12
PBT / Share (Rs.)	40.81	72.40	70.17	56.44	4.90
Net Profit / Share (Rs.)	33.32	61.99	51.85	43.99	-3.05
NP After MI And SOA / Share (Rs.)	33.98	63.02	51.99	43.88	-3.02
PBDIT Margin (%)	21.52	26.24	27.25	25.83	19.67
PBIT Margin (%)	9.74	13.56	14.07	12.30	5.86
PBT Margin (%)	5.54	11.56	11.95	9.40	0.81
Net Profit Margin (%)	4.52	9.90	8.83	7.33	-0.50
NP After MI And SOA Margin (%)	4.61	10.06	8.85	7.31	-0.50
Return on Networth / Equity (%)	54.20	118.29	159.74	1083.17	0.00
Return on Capital Employeed (%)	18.75	22.47	20.95	15.50	9.27
Return On Assets (%)	3.94	8.73	7.53	5.86	-0.38
Long Term Debt / Equity (X)	2.66	3.30	6.46	76.97	-5.32
Total Debt / Equity (X)	5.66	4.96	8.51	84.89	-7.11
Asset Turnover Ratio (%)	0.92	0.88	0.36	0.34	0.34
Current Ratio (X)	0.43	0.59	0.57	0.75	0.52
Quick Ratio (X)	0.43	0.57	0.57	0.74	0.51
Dividend Payout Ratio (NP) (%)	61.80	32.84	26.92	9.11	-175.39
Dividend Payout Ratio (CP) (%)	17.40	14.53	10.82	3.19	6.63
Earning Retention Ratio (%)	38.20	67.16	73.08	90.89	275.39
Cash Earning Retention Ratio (%)	82.60	85.47	89.18	96.81	93.37
Interest Coverage Ratio (X)	7.01	10.82	12.65	10.51	7.13
Interest Coverage Ratio (Post Tax) (X)	2.84	4.91	5.09	4.16	1.64
Enterprise Value (Cr.)	66599.82	41978.05	42182.74	39184.89	14828.06
EV / Net Operating Revenue (X)	3.18	2.35	2.52	2.29	0.86
EV / EBITDA (X)	14.76	8.97	9.25	8.87	4.41
MarketCap / Net Operating Revenue (X)	2.73	1.99	2.09	1.77	0.38
Retention Ratios (%)	38.19	67.15	73.07	90.88	275.39
Price / BV (X)	32.09	23.37	37.73	262.29	-5.20
Price / Net Operating Revenue (X)	2.73	1.99	2.09	1.77	0.38
EarningsYield	0.01	0.05	0.04	0.04	-0.01

After reviewing the key financial ratios for Tata Communications Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 24, the value is 10.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 10.00.
For Basic EPS (Rs.), as of Mar 24, the value is 33.98. This value is within the healthy range. It has decreased from 63.02 (Mar 23) to 33.98, marking a decrease of 29.04.
For Diluted EPS (Rs.), as of Mar 24, the value is 33.97. This value is within the healthy range. It has decreased from 63.02 (Mar 23) to 33.97, marking a decrease of 29.05.
For Cash EPS (Rs.), as of Mar 24, the value is 119.97. This value is within the healthy range. It has decreased from 141.36 (Mar 23) to 119.97, marking a decrease of 21.39.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 62.82. It has increased from 54.34 (Mar 23) to 62.82, marking an increase of 8.48.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 62.82. It has increased from 54.34 (Mar 23) to 62.82, marking an increase of 8.48.
For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 735.75. It has increased from 625.90 (Mar 23) to 735.75, marking an increase of 109.85.
For PBDIT / Share (Rs.), as of Mar 24, the value is 158.34. This value is within the healthy range. It has decreased from 164.26 (Mar 23) to 158.34, marking a decrease of 5.92.
For PBIT / Share (Rs.), as of Mar 24, the value is 71.68. This value is within the healthy range. It has decreased from 84.90 (Mar 23) to 71.68, marking a decrease of 13.22.
For PBT / Share (Rs.), as of Mar 24, the value is 40.81. This value is within the healthy range. It has decreased from 72.40 (Mar 23) to 40.81, marking a decrease of 31.59.
For Net Profit / Share (Rs.), as of Mar 24, the value is 33.32. This value is within the healthy range. It has decreased from 61.99 (Mar 23) to 33.32, marking a decrease of 28.67.
For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 33.98. This value is within the healthy range. It has decreased from 63.02 (Mar 23) to 33.98, marking a decrease of 29.04.
For PBDIT Margin (%), as of Mar 24, the value is 21.52. This value is within the healthy range. It has decreased from 26.24 (Mar 23) to 21.52, marking a decrease of 4.72.
For PBIT Margin (%), as of Mar 24, the value is 9.74. This value is below the healthy minimum of 10. It has decreased from 13.56 (Mar 23) to 9.74, marking a decrease of 3.82.
For PBT Margin (%), as of Mar 24, the value is 5.54. This value is below the healthy minimum of 10. It has decreased from 11.56 (Mar 23) to 5.54, marking a decrease of 6.02.
For Net Profit Margin (%), as of Mar 24, the value is 4.52. This value is below the healthy minimum of 5. It has decreased from 9.90 (Mar 23) to 4.52, marking a decrease of 5.38.
For NP After MI And SOA Margin (%), as of Mar 24, the value is 4.61. This value is below the healthy minimum of 8. It has decreased from 10.06 (Mar 23) to 4.61, marking a decrease of 5.45.
For Return on Networth / Equity (%), as of Mar 24, the value is 54.20. This value is within the healthy range. It has decreased from 118.29 (Mar 23) to 54.20, marking a decrease of 64.09.
For Return on Capital Employeed (%), as of Mar 24, the value is 18.75. This value is within the healthy range. It has decreased from 22.47 (Mar 23) to 18.75, marking a decrease of 3.72.
For Return On Assets (%), as of Mar 24, the value is 3.94. This value is below the healthy minimum of 5. It has decreased from 8.73 (Mar 23) to 3.94, marking a decrease of 4.79.
For Long Term Debt / Equity (X), as of Mar 24, the value is 2.66. This value exceeds the healthy maximum of 1. It has decreased from 3.30 (Mar 23) to 2.66, marking a decrease of 0.64.
For Total Debt / Equity (X), as of Mar 24, the value is 5.66. This value exceeds the healthy maximum of 1. It has increased from 4.96 (Mar 23) to 5.66, marking an increase of 0.70.
For Asset Turnover Ratio (%), as of Mar 24, the value is 0.92. It has increased from 0.88 (Mar 23) to 0.92, marking an increase of 0.04.
For Current Ratio (X), as of Mar 24, the value is 0.43. This value is below the healthy minimum of 1.5. It has decreased from 0.59 (Mar 23) to 0.43, marking a decrease of 0.16.
For Quick Ratio (X), as of Mar 24, the value is 0.43. This value is below the healthy minimum of 1. It has decreased from 0.57 (Mar 23) to 0.43, marking a decrease of 0.14.
For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 61.80. This value exceeds the healthy maximum of 50. It has increased from 32.84 (Mar 23) to 61.80, marking an increase of 28.96.
For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 17.40. This value is below the healthy minimum of 20. It has increased from 14.53 (Mar 23) to 17.40, marking an increase of 2.87.
For Earning Retention Ratio (%), as of Mar 24, the value is 38.20. This value is below the healthy minimum of 40. It has decreased from 67.16 (Mar 23) to 38.20, marking a decrease of 28.96.
For Cash Earning Retention Ratio (%), as of Mar 24, the value is 82.60. This value exceeds the healthy maximum of 70. It has decreased from 85.47 (Mar 23) to 82.60, marking a decrease of 2.87.
For Interest Coverage Ratio (X), as of Mar 24, the value is 7.01. This value is within the healthy range. It has decreased from 10.82 (Mar 23) to 7.01, marking a decrease of 3.81.
For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 2.84. This value is below the healthy minimum of 3. It has decreased from 4.91 (Mar 23) to 2.84, marking a decrease of 2.07.
For Enterprise Value (Cr.), as of Mar 24, the value is 66,599.82. It has increased from 41,978.05 (Mar 23) to 66,599.82, marking an increase of 24,621.77.
For EV / Net Operating Revenue (X), as of Mar 24, the value is 3.18. This value exceeds the healthy maximum of 3. It has increased from 2.35 (Mar 23) to 3.18, marking an increase of 0.83.
For EV / EBITDA (X), as of Mar 24, the value is 14.76. This value is within the healthy range. It has increased from 8.97 (Mar 23) to 14.76, marking an increase of 5.79.
For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 2.73. This value is within the healthy range. It has increased from 1.99 (Mar 23) to 2.73, marking an increase of 0.74.
For Retention Ratios (%), as of Mar 24, the value is 38.19. This value is within the healthy range. It has decreased from 67.15 (Mar 23) to 38.19, marking a decrease of 28.96.
For Price / BV (X), as of Mar 24, the value is 32.09. This value exceeds the healthy maximum of 3. It has increased from 23.37 (Mar 23) to 32.09, marking an increase of 8.72.
For Price / Net Operating Revenue (X), as of Mar 24, the value is 2.73. This value is within the healthy range. It has increased from 1.99 (Mar 23) to 2.73, marking an increase of 0.74.
For EarningsYield, as of Mar 24, the value is 0.01. This value is below the healthy minimum of 5. It has decreased from 0.05 (Mar 23) to 0.01, marking a decrease of 0.04.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Tata Communications Ltd as of March 13, 2025 is: ₹1,270.54

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of March 13, 2025, Tata Communications Ltd is Overvalued by 15.63% compared to the current share price 1,506.00

Intrinsic Value of Tata Communications Ltd as of March 13, 2025 is: 1,242.20

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of March 13, 2025, Tata Communications Ltd is Overvalued by 17.52% compared to the current share price 1,506.00

Last 5 Year EPS CAGR: -2.23%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -78.75, which is a positive sign. The company has shown consistent growth in sales (17.62 cr) and profit (89.69 cr) over the years.	The stock has a low average ROCE of 12.58%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 59.67, which may not be favorable. The company has higher borrowings (11,279.08) compared to reserves (402.62), which may suggest financial risk.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Communications Ltd:
1. Net Profit Margin: 4.52%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 18.75% (Industry Average ROCE: 9.94%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 54.2% (Industry Average ROE: 6.83%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 2.84
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.43
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 38.6 (Industry average Stock P/E: 10.18)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 5.66
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Tata Communications Ltd. is a Public Limited Listed company incorporated on 19/03/1986 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L64200MH1986PLC039266 and registration number is 039266. Currently Company is involved in the business activities of Activities of providing internet access by the operator of the wired infrastructure. Company's Total Operating Revenue is Rs. 7991.68 Cr. and Equity Capital is Rs. 285.00 Cr. for the Year ended 31/03/2024.

INDUSTRY	ADDRESS	CONTACT
Telecom Services	VSB, Mahatma Gandhi Road, Mumbai Maharashtra 400001	investor.relations@tatacommunications.com http://www.tatacommunications.com

Management
Name	Position Held
Ms. Renuka Ramnath	Chairperson & Independent Director
Mr. A S Lakshminarayanan	Managing Director & CEO
Mr. Ankur Verma	Non Executive Director
Mr. N Ganapathy Subramaniam	Non Executive Director
Mr. Ashok Sinha	Independent Director
Mr. Krishnakumar Natarajan	Independent Director

FAQ

What is the latest intrinsic value of Tata Communications Ltd?

The latest intrinsic value of Tata Communications Ltd as on 13 March 2025 is 1270.54, which is 15.63% lower than the current market price of ₹1,506.00, indicating the stock is overvalued by 15.63%. The intrinsic value of Tata Communications Ltd is calculated using PE ratio method. The stock has a market capitalization of ₹42,918 Cr. and recorded a high/low of ₹2,175/1,291 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,493 Cr and total liabilities of ₹25,217 Cr.

What is the Market Cap of Tata Communications Ltd?

The Market Cap of Tata Communications Ltd is 42,918 Cr..

What is the current Stock Price of Tata Communications Ltd as on 13 March 2025?

The current stock price of Tata Communications Ltd as on 13 March 2025 is ₹1,506.

What is the High / Low of Tata Communications Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Tata Communications Ltd stocks is ₹2,175/1,291.

What is the Stock P/E of Tata Communications Ltd?

The Stock P/E of Tata Communications Ltd is 38.6.

What is the Book Value of Tata Communications Ltd?

The Book Value of Tata Communications Ltd is 62.4.

What is the Dividend Yield of Tata Communications Ltd?

The Dividend Yield of Tata Communications Ltd is 1.13 %.

What is the ROCE of Tata Communications Ltd?

The ROCE of Tata Communications Ltd is 17.6 %.

What is the ROE of Tata Communications Ltd?

The ROE of Tata Communications Ltd is 65.2 %.

What is the Face Value of Tata Communications Ltd?

The Face Value of Tata Communications Ltd is 10.0.