Tata Communications Stock Price Analysis and Quick Research Report. Is Tata Communications an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Tata Communications. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Tata Communications has a PE ratio of 54.0678148982372 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Tata Communications has ROA of 5.9014% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Tata Communications has a Current ratio of 0.5433.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Tata Communications has a ROE of 10.3514%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Tata Communications has a Debt to Equity ratio of 0.308 which means that the company has low proportion of debt in its capital.

• Sales growth: Tata Communications has reported revenue growth of -8.932% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Tata Communications for the current financial year is 21.8378754194227%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Tata Communications is Rs 25 and the yield is 1.5586%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Tata Communications is Rs 29.6572. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Tata Communications in Ticker for free. Also, one can get the intrinsic value of Tata Communications by using Valuation Calculators, which are available with a Finology ONE subscription. 

Tata Communications FAQs

Q1. What is Tata Communications share price today?
Ans: The current share price of Tata Communications is Rs 1603.5.

Q2. What is the market capitalisation of Tata Communications?
Ans: Tata Communications has a market capitalisation of Rs 45699.75 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Tata Communications?
Ans: The PE ratio of Tata Communications is 54.0678148982372 and the P/B ratio of Tata Communications is 4.32982141208073, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Tata Communications share?
Ans: The 52-week high share price of Tata Communications is Rs 2175, and the 52-week low share price of Tata Communications is Rs 1291.

Q5. Does Tata Communications pay dividends?
Ans: Currently, Tata Communications pays dividends. Dividend yield of Tata Communications is around 1.5586%.

Q6. What are the face value and book value of Tata Communications shares?
Ans: The face value of Tata Communications shares is Rs 10, while the book value per share of Tata Communications is around Rs 370.3386. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Tata Communications?
Ans: Tata Communications has a total debt of Rs 3208.5 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Tata Communications?
Ans: The ROE of Tata Communications is 10.3514% and ROCE of Tata Communications is 10.9474%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Tata Communications a good buy for the long term?
Ans: The Tata Communications long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Tata Communications undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Tata Communications appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Tata Communications’s financials?
Ans: You can review Tata Communications’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.