Tata Communications, initially established as VSNL on March 19, 1986, has emerged as the vanguard in enabling the global digital ecosystem. With a strong foothold in emerging markets and an expansive infrastructure spanning across the globe, it occupies a leadership position. Catering to the needs of multinational companies and service providers, Tata Communications delivers comprehensive managed solutions. Collaborating with an impressive roster of 300 Fortune 500 companies, they offer cutting-edge, state-of-the-art solutions encompassing communication, collaboration, cloud, mobility, connected services, network provisions, and data center solutions.
As of October 17, 2023, Tata Communications is trading at ₹1,788.
Boasting a remarkable market capitalization of ₹50,976 Cr, Tata Communications continues to revolutionize the digital landscape, empowering organizations worldwide.
TATA Communications in Recent News: October 2023
Tata Communications has successfully acquired Kaleyra Inc, solidifying its ownership of the company as a wholly owned subsidiary in a deal valued at around $100 million. This strategic move seeks to fuse Tata Communications’ customer engagement expertise with Kaleyra’s cutting-edge technology and research capabilities, with the goal of enhancing global enterprise growth. The collaboration aims to redefine customer experiences by harnessing digital infrastructure and data insights, highlighting Kaleyra’s leadership role in the CPaaS sector.
Well, you can use any brokerage firms like Zerodha, SBI Securities, Groww, Upstox to buy Tata Communications shares. However, I personally use PayTM Money, because of low brokerage fees. I am also able to invest in mutual funds directly through the platform. Plus, I like the simple UI.
TATA COMMUNICATIONS SHARE PRICE TARGET : 2023 TO 2030
TATA COMMUNICATIONS SHARE PRICE TARGET 2023
| When | Maximum Price | Minimum Price |
| October 2023 | ₹1,966.80 | ₹1,788.00 |
| November 2023 | ₹1,928.24 | ₹1,752.94 |
| December 2023 | ₹1,991.87 | ₹1,810.79 |
With a keen focus on maintaining debt at optimal levels, Tata Communications demonstrates a strategic approach towards financial stability. Looking at the share price targets for 2023, the company presents an enticing investment opportunity.
Throughout the year, the projected Tata Communications share prices showcase a promising range, with a maximum price of ₹1,991.87 in December 2023 and a minimum price of ₹1,752.94 in November.
The attractiveness of Tata Communications as an investment extends beyond share price targets, as the company’s significant achievements contribute to its allure. Carrying 30% of the global internet route, connecting four out of five global mobile subscribers, and serving as the leading wholesale voice provider, Tata Communications solidifies its position as a key player in the digital communication landscape.
With the recent acquisition of Kaleyra and Oasis Smart Sim, Tata Communications is well-positioned for rapid growth in the upcoming years.
TATA COMMUNICATIONS SHARE PRICE TARGET 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹2,032.52 | ₹1,767.41 |
| February 2024 | ₹2,074.00 | ₹1,803.48 |
| March 2024 | ₹2,116.32 | ₹1,840.28 |
| April 2024 | ₹2,054.68 | ₹1,786.68 |
| May 2024 | ₹2,024.32 | ₹1,760.28 |
| June 2024 | ₹2,097.19 | ₹1,823.65 |
| July 2024 | ₹2,076.22 | ₹1,805.41 |
| August 2024 | ₹2,159.27 | ₹1,877.63 |
| September 2024 | ₹2,245.64 | ₹1,952.73 |
| October 2024 | ₹2,201.61 | ₹1,914.44 |
| November 2024 | ₹2,267.66 | ₹1,971.88 |
| December 2024 | ₹2,324.35 | ₹2,021.17 |
Tata Communications continues to captivate investors with its impressive share price targets for 2024, promising enticing potential returns. The year unfolds with the maximum price reaching ₹2,316.64 in December, and the minimum price settling at ₹1,357.09 in May, offering a diverse range of investment opportunities.
Beyond these attractive projections, the company’s remarkable achievements contribute to its allure. As the world’s largest wholesale voice provider, Tata Communications carries over a billion minutes a week, solidifying its prominent position in the telecommunications landscape.
Facilitating 1 out of every 10 international calls through its extensive network of 1600+ telecom partnerships and connecting more than 70% of the world’s mobile carriers, Tata Communications truly emerges as a key player in the global communication domain, adding further appeal to potential investors.
TATA COMMUNICATIONS SHARE PRICE TARGET 2025
| When | Maximum Price | Minimum Price |
| January 2025 | ₹2,370.84 | ₹1,823.72 |
| February 2025 | ₹2,431.63 | ₹1,870.48 |
| March 2025 | ₹2,526.46 | ₹1,943.43 |
| April 2025 | ₹2,476.92 | ₹1,905.32 |
| May 2025 | ₹2,404.78 | ₹1,849.83 |
| June 2025 | ₹2,512.99 | ₹1,933.07 |
| July 2025 | ₹2,463.72 | ₹1,895.17 |
| August 2025 | ₹2,539.92 | ₹1,953.78 |
| September 2025 | ₹2,628.81 | ₹2,022.16 |
| October 2025 | ₹2,697.16 | ₹2,074.74 |
| November 2025 | ₹2,764.59 | ₹2,126.61 |
| December 2025 | ₹2,833.71 | ₹2,179.77 |
Tata Communications’ share price targets for 2025 present an enticing investment opportunity, with a projected maximum price of ₹2,833.71 and a minimum price of ₹1,823.72. This range reflects the dynamic nature of the market, offering potential returns for investors. Adding to its appeal, Tata Communications boasts an impressive clientele that includes renowned companies such as Dabur, HCL, Federal Bank, Indiabulls, Aditya Birla, Spicejet, and HP Petrofac.
The company’s growth trajectory is further accentuated by the government’s divestment in March 2021, where its entire equity shareholding was sold, exemplifying a commitment to private sector participation. With these factors in mind, Tata Communications emerges as a compelling investment opportunity for those seeking to capitalize on its strong market position and growth potential.
TATA COMMUNICATIONS SHARE PRICE TARGET 2026 – 2030
| Year | Maximum Price | Minimum Price |
| 2026 | ₹2,975.39 | ₹2,082.77 |
| 2027 | ₹3,272.93 | ₹2,291.05 |
| 2028 | ₹4,582.10 | ₹2,291.05 |
| 2029 | ₹3,967.19 | ₹1,983.59 |
| 2030 | ₹5,157.35 | ₹3,610.14 |
Tata Communications’ share price targets for the years 2026 to 2030 exhibit an intriguing investment opportunity. The projected maximum prices range from ₹2,975.39 to ₹5,157.35, reflecting the potential for substantial returns. This forecast is complemented by the company’s diverse business segments, which include Data Business, Voice, and Others.
The Data Business segment, constituting 75% of the company’s revenue, offers a comprehensive range of global networking services and digital platforms, catering to large enterprises and telecom service providers. The Voice segment, contributing 15% of revenue, positions Tata Communications as the world’s largest wholesale voice provider, connecting a significant portion of the world’s mobile carriers.
Additionally, the Others segment, accounting for 10% of revenue, encompasses subsidiaries involved in ATM networks, network management outsourcing, and rental income from commercial properties. This diverse portfolio adds further appeal to Tata Communications as an investment opportunity.
TATA COMMUNICATIONS FINANCIAL CONDITION: LAST 5 YEARS
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
|---|---|---|---|---|---|
| Sales | 16,525 | 17,068 | 17,100 | 16,725 | 17,838 |
| Expenses | 13,780 | 13,779 | 12,840 | 12,498 | 13,520 |
| Operating Profit | 2,745 | 3,289 | 4,261 | 4,227 | 4,318 |
| OPM % | 17% | 19% | 25% | 25% | 24% |
| Other Income | 62 | -321 | 82 | 338 | 440 |
| Interest | 397 | 471 | 420 | 360 | 432 |
| Depreciation | 2,068 | 2,358 | 2,314 | 2,205 | 2,262 |
| Profit Before Tax | 343 | 140 | 1,609 | 2,000 | 2,063 |
| Tax % | 80% | 162% | 22% | 26% | 14% |
| Net Profit | -80 | -85 | 1,252 | 1,485 | 1,801 |
| EPS (Rs) | -2.89 | -3.02 | 43.88 | 51.99 | 63.02 |
| Dividend Payout % | -156% | -133% | 32% | 40% | 33% |
Over the past five years, Tata Communications has demonstrated a steady financial performance, with consistent growth in sales and operating profit. The company’s sales figures have shown a positive trend, reaching ₹17,838 crore in March 2023. Operating profit has also experienced consistent growth, reflecting the company’s efficiency and strong operational capabilities.
Furthermore, Tata Communications has displayed resilience during challenging times, evident from its ability to maintain profitability even during periods of economic uncertainty. The company’s net profit has steadily increased from ₹1,252 crore in March 2021 to ₹1,801 crore in March 2023. This growth has been accompanied by an improvement in earnings per share (EPS), which has risen to ₹63.02 in March 2023.
Additionally, Tata Communications has maintained a healthy dividend payout percentage, reflecting its commitment to rewarding shareholders.
With a market capitalization of ₹48,000 crore and a stock price of ₹1,684, the company’s financial strength and global presence as a top IP provider on multiple continents further enhance its attractiveness as an investment opportunity.
ICICI Securities asserts a recommendation to buy Tata Communications with a target price of Rs 1810.
FAQS
What is Tata Communications’ PE ratio?
As of October 17, 2023, Tata Communications’ price-to-earnings (PE) ratio stands at 32.5.
As of October 17, 2023, Tata Communications is trading at a share price of Rs.1,788.
What is Tata Communications’ PAT [Profit after Tax] trend in recent years?
Tata Communications has witnessed a consistent growth in its PAT over the past few years, with the net profit reaching INR 1,801 in March 2023, compared to INR 1,252 in March 2021. However, in this quarter, PAT declined to Rs. 382 crore from Rs. 545 crore, Q1 last year.
Tata Communications’ share price target for 2025 is INR 2,833.71.
As per our analysis, Tata Communications’ share price target for 2030 is Rs 5,157.35.
What is Tata Communications’ market position?
With its leading role as a global digital ecosystem enabler and a widespread infrastructure, Tata Communications holds a dominant position in emerging markets. The company’s strategic partnerships with 300 Fortune 500 companies provide cutting-edge solutions encompassing communication, collaboration, cloud, mobility, connectivity, network, and data center services.
Also read:
Is Tata Communications a Good Company to Invest in 2023?
Drawing upon the aforementioned details, Tata Communications stands out as an exemplary entity in the global digital realm, epitomizing excellence through its robust financial performance and unwavering commitment to delivering shareholder value. The company has demonstrated a commendable profit growth of 20.3% CAGR over the past five years, showcasing its exceptional ability to generate consistent and substantial returns.
Moreover, maintaining a healthy dividend payout of 35.0% affirms its dedication to rewarding investors. With an expansive and technologically advanced global network, including a substantial submarine cable infrastructure, Tata Communications secures its position as a premier IP provider across five continents.
Offering public and private network connectivity to over 240 countries and territories, the company’s significance cannot be overstated. Remarkably, it carries an impressive 30% of the world’s internet route and remains the top wholesale voice provider, connecting an astounding four out of five global mobile subscribers.
Tata Communications, according to me, is a good investment in 2023 for the reasons stated above. Having said that, I do not own any share of Tata Communications. I will wait for the share to fall before grabbing some.
Disclaimer: None of what is written in this article is a financial advise. Please consult a financial advisor before investing in Tata Communications or any other stocks.
What did we learn?
- 1 TATA Communications in Recent News: October 2023
- 2 How to purchase TATA Communications share?
- 3 TATA COMMUNICATIONS SHARE PRICE TARGET : 2023 TO 2030
- 4 TATA COMMUNICATIONS FINANCIAL CONDITION: LAST 5 YEARS
- 5 TATA COMMUNICATIONS Share Price Target by ICICI Securities
- 6 FAQS
- 6.1 What is Tata Communications’ PE ratio?
- 6.2 What is the current share price of Tata Communications?
- 6.3 What is Tata Communications’ PAT [Profit after Tax] trend in recent years?
- 6.4 What is Tata Communications’s share price target for the year 2025?
- 6.5 What is the projected share price target of Tata Communications for the year 2030?
- 6.6 What is Tata Communications’ market position?
- 7 Is Tata Communications a Good Company to Invest in 2023?
