Buy Tata Communications, target price Rs 1680: ICICI Securities
TCom is in a sweet spot with corporates looking to significantly invest in upgrading their networks, and adoption of next-gen connectivity.
By ETMarkets.com | Updated:
BCCL
ICICI Securities has buy call on Tata Communications Ltd. with a target price of Rs 1680. The current market price of Tata Communications is Rs 1427.65. Time period given by analyst is one year when Tata Communications Ltd. price can reach defined target. .
Investment Rationale
TCom is in a sweet spot with corporates looking to significantly invest in upgrading their networks, and adoption of next-gen connectivity. TCom’s ability to provide digital services only adds to TAM. The brokerage has cut EBITDA estimates for FY22E / FY23E by 4.7% and 2.4%. It maintains BUY with a revised TP of Rs1,680 (from Rs1,750) as it rolls over valuation to FY24E, but cut EPS multiple to 20x (from 22x).
Promoter/FII Holdings
Promoters held 176.58 per cent stake in the company as of 31-Dec-2021, while FIIs owned 64.71 per cent, DIIs 26.55 per cent.
Investment Rationale
TCom is in a sweet spot with corporates looking to significantly invest in upgrading their networks, and adoption of next-gen connectivity. TCom’s ability to provide digital services only adds to TAM. The brokerage has cut EBITDA estimates for FY22E / FY23E by 4.7% and 2.4%. It maintains BUY with a revised TP of Rs1,680 (from Rs1,750) as it rolls over valuation to FY24E, but cut EPS multiple to 20x (from 22x).
Promoter/FII Holdings
Promoters held 176.58 per cent stake in the company as of 31-Dec-2021, while FIIs owned 64.71 per cent, DIIs 26.55 per cent.
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