NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Tata Communications Ltd. reported 16% QoQ growth in revenue (inline) and 12% QoQ growth in Ebitda (9% beat). Cost synergies after the integration of the Kaleyra acquisition led to a beat in Ebitda. Adjusting for the acquisitions, revenue/Ebitda were flat QoQ.
Tata Communications' management's endeavor to drive growth has diluted margins, including the loss-making acquisitions. However, the company has reiterated its longterm focus on margin-accretive growth. We have raised our estimates to factor in a higher Ebitda run rate from the acquisition and now expect revenue/Ebitda compound annual growth rates of 15%/16% over FY24-26.
At price/earning of 23 times and enterprise value/Ebitda of 8.5 times on FY26E earnings per share, we see limited upside.
We reiterate our 'Neutral' rating on the stock.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.
