Buy Tata Communications, target price Rs 1680: ICICI Direct

ICICI Direct has buy call on with a target price of Rs 1680. The current market price of Tata Communications Ltd. is Rs 1477.75. Time period given by analyst is 3 months when Tata Communications Ltd. price can reach defined target.

Tata Communications Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 43377.00 Crore) operating in Telecommunications sector.

Tata Communications Ltd. key Products/Revenue Segments include Telecommunication Services for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company has reported a Consolidated Total Income of Rs 4210.44 Crore, up 2.29 % from last quarter Total Income of Rs 4116.14 Crore and down -5.96 % from last year same quarter Total Income of Rs 4477.18 Crore. Company has reported net profit after tax of Rs 425.81 Crore in latest quarter.

Investment Rationale
Key point to highlight is the stock has entirely retraced past four month’s decline (| 1540-1201) in just two months. Faster pace of retracement indicates robust price structure that augurs well for extension of upward momentum

Promoter/FII Holdings
Promoters held 58.86 per cent stake in the company as of 30-Sep-2021, while FIIs owned 23.45 per cent, DIIs 7.63 per cent.