Tata Communication Gets ICICI Securities' 'Buy' Upgrade On Recent Stock Price Correction — Check Target Price

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ICICI Securities Report

We hosted Tata Communications Ltd.’s management – Mr. Kabir Ahmed Shakir, CFO – for an NDR in the UK. Summarily, we learn, Tata Communications remains excited about its digital business as key parameters are advancing encouragingly, and order book growth remains healthy.

Further, Tata Communications was faced with certain challenges in Kaleyra, and core connectivity – the company is making headway towards the resolution of both; accordingly, growth and profitability outlook remains healthy.

Alongside, Tata Communications reiterated its guidance of achieving data revenue of Rs 280 billion with Ebitda margin of 23–25% by FY28.

We retain our estimates, and target price at Rs 2,000 (core business EV/Ebitda multiple to 12x).

We upgrade our rating to Buy (from Add) post the recent stock price correction.

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