ScoreWhy is Tata Communications Ltd ?
1
High Management Efficiency with a high ROCE of 18.37%
2
High Debt Company with a Debt to Equity ratio (avg) at 12.62 times
- Poor long term growth as Operating profit has grown by an annual rate 6.65% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 12.62 times
3
Poor long term growth as Operating profit has grown by an annual rate 6.65% of over the last 5 years
4
Negative results in Sep 25
- OPERATING CF(Y) Lowest at Rs 2,910.81 Cr
- PAT(Q) At Rs 197.29 cr has Fallen at -25.5% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST (Q) Lowest at 5.81 times
5
With ROCE of 12.5, it has a Fair valuation with a 4.2 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 1.80%, its profits have risen by 0.9% ; the PEG ratio of the company is 50.8
6
High Institutional Holdings at 32.64%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.65% 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
0.87%
0.06
29.39%
Sensex
8.49%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.82%
EBIT Growth (5y)
2.06%
EBIT to Interest (avg)
3.82
Debt to EBITDA (avg)
2.45
Net Debt to Equity (avg)
4.52
Sales to Capital Employed (avg)
1.62
Tax Ratio
22.12%
Dividend Payout Ratio
38.80%
Pledged Shares
0
Institutional Holding
32.95%
ROCE (avg)
18.99%
ROE (avg)
188.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
36
Price to Book Value
15.71
EV to EBIT
30.44
EV to EBITDA
12.36
EV to Capital Employed
3.66
EV to Sales
2.38
PEG Ratio
9.20
Dividend Yield
1.59%
ROCE (Latest)
12.46%
ROE (Latest)
36.64%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET SALES(Q)
Highest at Rs 6,188.97 cr
PBDIT(Q)
Highest at Rs 1,228.10 cr.
PAT(Q)
Highest at Rs 425.16 cr.
-4What is not working for the Company
ROCE(HY)
Lowest at 11.37%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 327.43 cr
NON-OPERATING INCOME(Q)
is 48.49 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Tata Comm
Profit After Tax (PAT) - Quarterly
At Rs 425.16 cr has Grown at 63.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 260.86 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 6,188.97 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 1,228.10 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 425.16 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Tata Comm
Non Operating Income - Quarterly
is 48.49 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 327.43 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 259.29 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
