Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tata Communications Ltd

About the Company - Tata Communications Ltd

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 Other satellite telecommunications activities. Company’s Total Operating Revenue is Rs. 6587.35 Cr. and Equity Capital is Rs. 285.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom ServicesVSB, Mahatma Gandhi Road, Fort, Mumbai Maharashtra 400001investor.relations@tatacommunications.com
http://www.tatacommunications.com
Management
NamePosition Held
Ms. Renuka RamnathChairperson & Independent Director
Mr. Amur S LakshminarayananManaging Director & CEO
Mr. Ankur VermaNon Executive Director
Mr. N Ganapathy SubramaniamNon Executive Director
Mr. Ashok SinhaIndependent Director
Mr. Krishnakumar NatarajanIndependent Director

Basic Stock Data of Tata Communications Ltd

Last Updated: May 30, 2024, 6:20 am

Market Cap 52,321 Cr.
Current Price 1,835
High / Low2,085/1,245
Stock P/E48.4
Book Value 62.7
Dividend Yield1.14 %
ROCE17.6 %
ROE65.5 %
Face Value 10.0
PEG Ratio0.45

Tata Communications Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4,2234,0734,1034,1744,1854,2634,3114,4314,5284,5694,7714,8725,633
Expenses3,1773,0583,1173,0613,1023,2183,2333,3013,4513,5343,7473,8574,499
Operating Profit1,0461,0159861,1131,0821,0451,0771,1301,0771,0341,0241,0151,134
OPM %25%25%24%27%26%25%25%26%24%23%21%21%20%
Other Income-359194927243234113316219125-174
Interest10493969183908098123132131137188
Depreciation557595532542542589537552555618580605619
Profit before tax381386377530484609694593431345504298154
Tax %19%23%21%20%20%40%23%11%10%8%26%26%74%
Net Profit30929929742639336954553439532738222145
EPS in Rs10.8510.5010.3914.9313.8712.8119.0818.6813.8211.4413.397.741.57

Last Updated: May 11, 2024, 11:17 am

Tata Communications Ltd Quarterly Chart

Tata Communications Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales14,19617,21317,71419,91318,14917,62016,77216,52517,06817,10016,72517,83819,846
Expenses12,40515,15315,70816,91915,71415,21414,35913,78013,77912,84012,49813,52015,638
Operating Profit1,7912,0602,0062,9942,4342,4062,4122,7453,2894,2614,2274,3184,208
OPM %13%12%11%15%13%14%14%17%19%25%25%24%21%
Other Income145331717291821,294-11662-32182338440104
Interest834794427751409367344397471420360432588
Depreciation1,8202,0271,8522,1611,8641,8661,9062,0682,3582,3142,2052,2622,422
Profit before tax-718-4314443732431,467463431401,6092,0002,0631,301
Tax %-9%-51%77%99%96%16%778%80%162%22%26%14%
Net Profit-788-6511033101,235-326-80-851,2521,4851,801975
EPS in Rs-27.88-21.873.560.050.3043.26-11.53-2.89-3.0243.8851.9963.0234.14
Dividend Payout %-7%-14%126%12,151%1,412%14%-39%-156%-133%32%40%33%

Tata Communications Ltd Profit & Loss Yearly Chart

Tata Communications Ltd Growth

Compounded Sales Growth
10 Years:2%
5 Years:5%
3 Years:7%
TTM:18%
Compounded Profit Growth
10 Years:30%
5 Years:73%
3 Years:-5%
TTM:-37%
Stock Price CAGR
10 Years:24%
5 Years:40%
3 Years:21%
1 Year:45%
Return on Equity
10 Years:%
5 Years:%
3 Years:126%
Last Year:65%

Last Updated: May 23, 2024, 3:26 pm

Tata Communications Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital285285285285285285285285285285285285285
Reserves1,9971,14051536-6481,307214-467-1,563-1706431,2331,168
Borrowings11,08212,36213,69413,07614,2319,2148,9279,93512,41311,3949,1228,5778,812
Other Liabilities8,97510,04110,45610,79811,23010,22810,13110,19810,9969,7979,58810,42410,288
Total Liabilities22,33923,82824,95024,19525,09821,03319,55719,95122,13121,30619,63820,51920,554
Fixed Assets14,20414,71114,91414,70414,44410,92910,79711,28912,76811,52010,93610,50010,924
CWIP1,1497716536388007515203613494938521,1481,317
Investments7531,3221,7581,7681,8372,4341,2501,4911,5632,2331,5651,9511,400
Other Assets6,2347,0247,6257,0868,0176,9206,9906,8097,4517,0606,2846,9216,913
Total Assets22,33923,82824,95024,19525,09821,03319,55719,95122,13121,30619,63820,51920,554

Tata Communications Ltd Reserves and Borrowings Chart

Tata Communications Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,7562,4553,0623,0282,3632,3941,7131,8442,5253,1804,2044,384
Cash from Investing Activity -2,236-2,481-2,280-1,908-2,313940-500-2,284-1,521-2,007-894-1,836
Cash from Financing Activity 53320-186-1,388-9-3,276-959-28-942-1,205-3,431-2,241
Net Cash Flow-427293596-2684158254-46761-32-121308

Tata Communications Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days675646615464666956565665
Inventory Days
Days Payable
Cash Conversion Cycle675646615464666956565665
Working Capital Days-88-88-124-93-73-86-71-94-59-56-61-51
ROCE %2%4%8%7%23%8%8%9%18%22%24%

Tata Communications Ltd Financial Efficiency Indicators Chart

Tata Communications Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%
FIIs24.03%23.45%21.57%19.38%17.88%17.02%17.28%16.99%17.18%17.53%19.20%18.24%
DIIs7.36%7.63%8.85%11.49%12.93%13.89%13.92%14.02%14.07%13.55%12.12%13.14%
Public9.75%10.06%10.72%10.26%10.33%10.22%9.92%10.11%9.88%10.06%9.81%9.77%
No. of Shareholders93,7241,06,4861,19,4871,44,9791,74,9481,75,0171,66,1161,82,9401,70,8571,85,9761,95,6981,93,157

Tata Communications Ltd Shareholding Pattern Chart

No. of Tata Communications Ltd Shareholders

Tata Communications Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan9,642,2723.351603.75
Axis Midcap Fund2,198,4441.66365.66
Mirae Asset Emerging Bluechip Fund2,069,6201.22344.23
Mirae Asset Midcap Fund1,739,9862.46289.4
Kotak Equity Arbitrage Fund - Regular Plan1,051,0000.6174.81
HSBC Midcap Fund841,9001.75140.03
Quant Mid Cap Fund739,0773.76122.93
Invesco India Arbitrage Fund697,0001.34115.93
HDFC Large and Mid Cap Fund - Regular Plan602,7220.84100.25
Tata Large & Mid Cap Fund - Regular Plan600,0001.999.8

Tata Communications Ltd ROCE Trend

Tata Communications Ltd EPS Trend

Tata Communications Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)63.0251.9943.88-3.02-2.89
Diluted EPS (Rs.)63.0251.9943.88-3.02-2.89
Cash EPS (Rs.)141.36129.21125.1879.6775.00
Book Value[Excl.RevalReserv]/Share (Rs.)54.3433.555.04-44.69-6.18
Book Value[Incl.RevalReserv]/Share (Rs.)54.3433.555.04-44.69-6.18
Revenue From Operations / Share (Rs.)625.90586.83600.00598.88579.82
PBDIT / Share (Rs.)164.26159.96154.99117.8598.42
PBIT / Share (Rs.)84.9082.6173.8135.1225.88
PBT / Share (Rs.)72.4070.1756.444.9012.04
Net Profit / Share (Rs.)61.9951.8543.99-3.052.45
NP After MI And SOA / Share (Rs.)63.0251.9943.88-3.02-2.89
PBDIT Margin (%)26.2427.2525.8319.6716.97
PBIT Margin (%)13.5614.0712.305.864.46
PBT Margin (%)11.5611.959.400.812.07
Net Profit Margin (%)9.908.837.33-0.500.42
NP After MI And SOA Margin (%)10.068.857.31-0.50-0.49
Return on Networth / Equity (%)118.29159.741083.170.000.00
Return on Capital Employeed (%)22.4720.9515.509.276.98
Return On Assets (%)8.737.535.86-0.38-0.41
Long Term Debt / Equity (X)3.306.4676.97-5.32-37.37
Total Debt / Equity (X)4.968.5184.89-7.11-50.41
Asset Turnover Ratio (%)0.410.360.340.340.33
Current Ratio (X)0.590.570.750.520.56
Quick Ratio (X)0.570.570.740.510.55
Dividend Payout Ratio (NP) (%)32.8426.929.11-175.39-186.23
Dividend Payout Ratio (CP) (%)14.5310.823.196.637.72
Earning Retention Ratio (%)67.1673.0890.89275.39286.23
Cash Earning Retention Ratio (%)85.4789.1896.8193.3792.28
Interest Coverage Ratio (X)10.8212.6510.517.137.07
Interest Coverage Ratio (Post Tax) (X)4.915.094.161.641.17
Enterprise Value (Cr.)41978.0542182.7439184.8914828.0625827.66
EV / Net Operating Revenue (X)2.352.522.290.861.56
EV / EBITDA (X)8.979.258.874.419.21
MarketCap / Net Operating Revenue (X)1.992.091.770.381.06
Retention Ratios (%)67.1573.0790.88275.39286.23
Price / BV (X)23.3737.73262.29-5.20-96.31
Price / Net Operating Revenue (X)1.992.091.770.381.06
EarningsYield0.050.040.04-0.010.00

Tata Communications Ltd Profitability Ratios (%)

Tata Communications Ltd Liquidity Ratios

Tata Communications Ltd Liquidity Ratios (%)

Tata Communications Ltd Interest Coverage Ratios (%)

Tata Communications Ltd Valuation Ratios

Fair Value

Fair Value: ₹2,010.38

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.

Undervalued: 9.56% compared to the current price ₹1835

Intrinsic Value: ₹4,164.84

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 126.97% compared to the current price ₹1835

Last 5 Year EPS CAGR: 107.17%

*Investments are subject to market risks

Strength and Weakness of Tata Communications Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -78.67, which is a positive sign.
  2. The company has shown consistent growth in sales (16.92 cr) and profit (34.38 cr) over the years.
  1. The stock has a low average ROCE of 11.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 59.67, which may not be favorable.
  3. The company has higher borrowings (10,987.62) compared to reserves (415.77), which may suggest financial risk.

FAQ

What is the latest fair value of Tata Communications Ltd?

The latest fair value of Tata Communications Ltd is ₹2010.38.

What is the Market Cap of Tata Communications Ltd?

The Market Cap of Tata Communications Ltd is 52,321 Cr..

What is the current Stock Price of Tata Communications Ltd as on 30 May 2024?

The current stock price of Tata Communications Ltd as on 30 May 2024 is ₹1,835.

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

In FY 2024, the High / Low of Tata Communications Ltd stocks is 2,085/1,245.

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

The Stock P/E of Tata Communications Ltd is 48.4.

What is the Book Value of Tata Communications Ltd?

The Book Value of Tata Communications Ltd is 62.7.

What is the Dividend Yield of Tata Communications Ltd?

The Dividend Yield of Tata Communications Ltd is 1.14 %.

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 65.5 %.

What is the Face Value of Tata Communications Ltd?

The Face Value of Tata Communications Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Communications Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE