Tata Communications Ltd

TATACOMMTelecom - Cellular & Fixed line services
1708.90+0.00 (+0.00%)
As on 21 Jan 2026, 08:44 amMarket Closed

Fundamental Score

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Tata Communications Ltd Share Price Live NSE/BSE

No data
High
0.00
Low
0.00
Volume
0
Change
+0.00%

Profitability Metrics

Excellent

Return on Equity

55.18%
Poor

Return on Capital Employed

14.79%
Excellent

Operating Profit Margin (5Y)

22.57%
Average

Dividend Yield

1.36%

Valuation Metrics

Average

Price to Earnings

52.44x

Market Capitalization

52.33K (Cr)

Industry P/E

52.44x

Growth Metrics

Poor

YoY Quarterly Profit Growth

-18.24%
Poor

YoY Quarterly Sales Growth

6.49%
Poor

Sales Growth (5Y)

6.25%
Excellent

EPS Growth (5Y)

33.01%
Excellent

Profit Growth (5Y)

33.01%

Financial Health

Poor

Debt to Equity

4.68x
Good

Interest Coverage

2.75x
Excellent

Free Cash Flow (5Y)

9.10K (Cr)

Ownership Structure

Good

Promoter Holding

58.86%
Good

FII Holding

13.61%
Good

DII Holding

19.03%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
58.86%
Promoter Holding
52.33K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of TATACOMM across key market metrics for learning purposes.

Positive Indicators

8 factors identified

Strong Return on Equity (55.18%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Strong Operating Margins (22.57%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Excellent EPS Growth (33.01% CAGR)

Observation: Outstanding 5-year earnings per share compound growth.

Analysis: EPS CAGR >15% indicates strong wealth creation potential and effective capital allocation over extended periods.

Strong Profit Growth Track Record (33.01% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Strong Cash Generation (₹9102.06 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Balanced Promoter Holding (58.86%)

Observation: Optimal balance between promoter control and public float.

Analysis: Promoter holding in 50-75% range provides management alignment while ensuring adequate liquidity.

Strong Institutional Confidence (FII+DII: 32.64%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

7 factors identified

Premium Valuation Risk (P/E: 52.44x)

Observation: High valuation multiples may limit upside potential.

Analysis: Elevated P/E ratios require strong growth execution to justify current valuations. Consider entry timing carefully.

Profit Decline Concern (-18.24%)

Observation: Significant year-over-year profit contraction observed.

Analysis: Declining profitability requires investigation into underlying causes. Monitor for recovery signs and management guidance.

Elevated Debt Levels (D/E: 4.68)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

High Debt-to-Equity Ratio

Observation: Elevated financial risk due to high leverage.

Analysis: High debt levels may strain cash flows and increase financial risk during economic downturns.

Very High Debt Levels

Observation: Excessive leverage may strain cash flows.

Analysis: Debt-to-equity above 2.0 indicates potential financial distress risk.

High P/E Ratio

Observation: Stock may be overvalued relative to earnings.

Analysis: P/E above 30 requires strong growth execution to justify current valuations.

Very High P/E Ratio

Observation: Significant overvaluation risk present.

Analysis: Extremely high P/E ratios indicate potential bubble territory and high downside risk.

Financial Statements

Comprehensive financial data for Tata Communications Ltd

About TATACOMM

Business Overview

Tata Communications Limited provides telecom services worldwide. The company operates through Data Services, Voice Solutions, Payment Solutions, Transformation Services, Campaign Registry, and Real Estate segments. It provides voice and data transmission services; internet connectivity services; and other value-added services, such as unified conferencing and collaboration, managed hosting, mobile global roaming and signaling, transponder lease, and television up-linking, and other managed services, as well as sells and leases bandwidth on undersea cable systems. The company also offers end-to-end automated teller machines deployment, POS enablement, financial inclusion, card issuance and related managed services, and switching services to banking sector; cyber security; data center colocation services; and network management and support services. In addition, it provides networking services, including managed LAN/WAN, private lines, business internet, hybrid WAN, and cloud connectivity; unified communications as a service; cloud solutions; Edge platform; cyber security services, such as cloud security, security assessment, consulting services, cyber threat detection and response, and networking security; managed SASE; IoT fabric solutions comprising connectivity, management, orchestration, and data analytics; carrier services, such as wholesale voice transport and termination, mobile messaging exchange, voice access services, strategic sourcing, and fraud prevention as a service; and content delivery network solutions, which include video and secure content delivery, acceleration services, and programmable edge compute. Further, the company engages in letting, leasing, licensing, or development of immovable properties. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008. Tata Communications Limited was incorporated in 1986 and is based in Mumbai, India.

Company Details

Symbol:TATACOMM
Industry:Telecom - Cellular & Fixed line services
Sector:Telecom - Cellular & Fixed line services

Key Leadership

Mr. Amur Swaminathan Lakshminarayanan
MD, CEO & Executive Director
Mr. Kabir Ahmed Shakir
Chief Financial Officer
Mr. Sivasamban Natarajan
Executive Vice President, Global Operations Head

TATACOMM Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)55.18%
Return on Capital Employed14.79%
Operating Profit Margin (5Y)22.57%
Debt to Equity Ratio4.68
Interest Coverage Ratio2.75

Growth & Valuation

Sales Growth (5Y)6.25%
Profit Growth (5Y)33.01%
EPS Growth (5Y)33.01%
YoY Quarterly Profit Growth-18.24%
YoY Quarterly Sales Growth6.49%

Frequently Asked Questions

What is the current price of Tata Communications Ltd (TATACOMM)?

As of 21 Jan 2026, 08:44 am IST, Tata Communications Ltd (TATACOMM) is currently trading at ₹1708.90. The stock has a market capitalization of ₹52.33K (Cr).

Is TATACOMM share price Overvalued or Undervalued?

TATACOMM is currently trading at a P/E ratio of 52.44x, compared to the industry average of 52.44x. Based on this relative valuation, the stock appears to be Overvalued against its sector peers.

What factors affect the Tata Communications Ltd share price?

Key factors influencing TATACOMM's price include its quarterly earnings growth (Sales Growth: 6.49%), raw material costs, government infrastructure spending, and institutional flows (FII/DII holding).

Is Tata Communications Ltd a good stock for long-term investment?

Tata Communications Ltd shows a 5-year Profit Growth of 33.01% and an ROE of 55.18%. Long-term investors should consider these fundamentals alongside the debt-to-equity ratio of 4.68 before investing.

How does Tata Communications Ltd compare with its industry peers?

Tata Communications Ltd competes with major peers in the Telecom - Cellular & Fixed line services. Investors should compare TATACOMM's P/E of 52.44x and ROE of 55.18% against the industry averages to determine its competitive standing.

What is the P/E ratio of TATACOMM and what does it mean?

TATACOMM has a P/E ratio of 52.44x compared to the industry average of 52.44x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹52 for every ₹1 of annual earnings.

How is TATACOMM performing according to Bull Run's analysis?

TATACOMM has a Bull Run fundamental score of 49.1/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability, growth metrics, and valuation ratios.

What sector and industry does TATACOMM belong to?

TATACOMM operates in the Telecom - Cellular & Fixed line services industry. This classification helps understand the competitive landscape and sector-specific trends affecting Tata Communications Ltd.

What is Return on Equity (ROE) and why is it important for TATACOMM?

TATACOMM has an ROE of 55.18%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently Tata Communications Ltd generates profits from shareholders' equity.

How is TATACOMM's debt-to-equity ratio and what does it indicate?

TATACOMM has a debt-to-equity ratio of 4.68, which indicates high leverage that increases financial risk. A ratio below 1.0 generally indicates conservative financing.

What is TATACOMM's dividend yield and is it a good dividend stock?

TATACOMM offers a dividend yield of 1.36%, which means you receive ₹1.36 annual dividend for every ₹100 invested.

How has TATACOMM grown over the past 5 years?

TATACOMM has achieved 5-year growth rates of: Sales Growth 6.25%, Profit Growth 33.01%, and EPS Growth 33.01%.

What is the promoter holding in TATACOMM and why does it matter?

Promoters hold 58.86% of TATACOMM shares, with 0.00% of promoter shares pledged. High promoter holding often indicates strong management confidence.

What is TATACOMM's market capitalization category?

TATACOMM has a market capitalization of ₹52334 crores, placing it in the Large-cap category.

How volatile is TATACOMM stock?

TATACOMM has a beta of N/A. A beta > 1 suggests the stock is more volatile than the market, while a beta < 1 suggests it is less volatile.

What is the 52-week high and low for TATACOMM?

TATACOMM has a 52-week high of ₹N/A and low of ₹N/A.

What is TATACOMM's operating profit margin trend?

TATACOMM has a 5-year average Operating Profit Margin (OPM) of 22.57%, indicating the company's operational efficiency.

How is TATACOMM's quarterly performance?

Recent quarterly performance shows YoY Sales Growth of 6.49% and YoY Profit Growth of -18.24%.

What is the institutional holding pattern in TATACOMM?

TATACOMM has FII holding of 13.61% and DII holding of 19.03%. Significant institutional holding often suggests professional confidence in the stock.