Tata Communications Limited

NSEI:TATACOMM Stock Report

Market Cap: ₹495.0b

Tata Communications Valuation

Is TATACOMM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TATACOMM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TATACOMM (₹1711.55) is trading below our estimate of fair value (₹1766.11)

Significantly Below Fair Value: TATACOMM is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TATACOMM?

Key metric: As TATACOMM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TATACOMM. This is calculated by dividing TATACOMM's market cap by their current earnings.
What is TATACOMM's PE Ratio?
PE Ratio52.7x
Earnings₹9.26b
Market Cap₹494.96b

Price to Earnings Ratio vs Peers

How does TATACOMM's PE Ratio compare to its peers?

The above table shows the PE ratio for TATACOMM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.8x
INDUSTOWER Indus Towers
11.5x1.5%₹868.1b
HFCL HFCL
48.7xn/a₹183.7b
KDL Kore Digital
50.1xn/a₹8.0b
BHARTIHEXA Bharti Hexacom
57x32.3%₹683.2b
TATACOMM Tata Communications
52.7x39.2%₹487.8b

Price-To-Earnings vs Peers: TATACOMM is expensive based on its Price-To-Earnings Ratio (52.7x) compared to the peer average (41.8x).

Price to Earnings Ratio vs Industry

How does TATACOMM's PE Ratio compare vs other companies in the Asian Telecom Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TATACOMM 52.7xIndustry Avg. 15.7xNo. of Companies21PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TATACOMM is expensive based on its Price-To-Earnings Ratio (52.7x) compared to the Asian Telecom industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is TATACOMM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TATACOMM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio52.7x
Fair PE Ratio49.7x

Price-To-Earnings vs Fair Ratio: TATACOMM is expensive based on its Price-To-Earnings Ratio (52.7x) compared to the estimated Fair Price-To-Earnings Ratio (49.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TATACOMM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,711.55
₹1,954.25
+14.2%
9.4%₹2,220.00₹1,645.00n/a8
Nov ’25₹1,790.80
₹1,973.22
+10.2%
9.2%₹2,220.00₹1,645.00n/a9
Oct ’25₹2,158.75
₹2,003.11
-7.2%
9.4%₹2,270.00₹1,625.00n/a9
Sep ’25₹1,961.85
₹2,003.11
+2.1%
9.4%₹2,270.00₹1,625.00n/a9
Aug ’25₹1,970.85
₹1,984.22
+0.7%
8.4%₹2,150.00₹1,625.00n/a9
Jul ’25₹1,855.85
₹1,995.89
+7.5%
10.2%₹2,231.00₹1,525.00n/a9
Jun ’25₹1,778.30
₹1,991.44
+12.0%
10.3%₹2,231.00₹1,525.00n/a9
May ’25₹1,729.85
₹1,991.44
+15.1%
10.3%₹2,231.00₹1,525.00n/a9
Apr ’25₹2,036.55
₹1,911.75
-6.1%
8.1%₹2,100.00₹1,595.00n/a8
Mar ’25₹1,905.55
₹1,911.75
+0.3%
8.1%₹2,100.00₹1,595.00n/a8
Feb ’25₹1,704.30
₹1,904.43
+11.7%
8.3%₹2,060.00₹1,595.00n/a7
Jan ’25₹1,766.85
₹1,770.00
+0.2%
12.3%₹2,060.00₹1,400.00n/a7
Dec ’24₹1,659.85
₹1,770.00
+6.6%
12.3%₹2,060.00₹1,400.00n/a7
Nov ’24₹1,671.65
₹1,705.00
+2.0%
15.6%₹2,060.00₹1,250.00₹1,790.808
Oct ’24₹1,932.75
₹1,666.88
-13.8%
16.8%₹2,060.00₹1,250.00₹2,158.758
Sep ’24₹1,852.40
₹1,636.25
-11.7%
15.2%₹2,060.00₹1,250.00₹1,961.858
Aug ’24₹1,762.75
₹1,636.25
-7.2%
15.2%₹2,060.00₹1,250.00₹1,970.858
Jul ’24₹1,594.65
₹1,543.29
-3.2%
11.7%₹1,810.00₹1,250.00₹1,855.857
Jun ’24₹1,334.00
₹1,382.43
+3.6%
9.1%₹1,550.00₹1,200.00₹1,778.307
May ’24₹1,269.50
₹1,382.43
+8.9%
9.1%₹1,550.00₹1,200.00₹1,729.857
Apr ’24₹1,245.50
₹1,361.86
+9.3%
14.1%₹1,646.00₹1,150.00₹2,036.557
Mar ’24₹1,206.15
₹1,361.86
+12.9%
14.1%₹1,646.00₹1,150.00₹1,905.557
Feb ’24₹1,202.45
₹1,361.86
+13.3%
14.1%₹1,646.00₹1,150.00₹1,704.307
Jan ’24₹1,274.45
₹1,303.83
+2.3%
10.2%₹1,500.00₹1,100.00₹1,766.856
Dec ’23₹1,297.90
₹1,303.83
+0.5%
10.2%₹1,500.00₹1,100.00₹1,659.856
Nov ’23₹1,269.50
₹1,303.83
+2.7%
10.2%₹1,500.00₹1,100.00₹1,671.656

Analyst Forecast: Target price is less than 20% higher than the current share price.

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