Tata Group Stock: Shares of Tata Group’s telecom company Tata Communications were under pressure on Thursday (January 23). After opening in the green in early trade, the stock fell more than 3 percent. The impact of the results of the third quarter (Q3FY25) is visible on the stock movement. Both the company’s profit and revenue have increased during the October-December 2024 quarter. After the results, brokerage houses have released investment strategies on Tata Group stock. He believes the results have been mixed. Its effect can be seen on the stock in future also.
Brokerage firm Nuvama has maintained BUY rating on Tata Telecommunications. Also, from the perspective of 12 months, the target price per share has been kept at Rs 2000. The share closed at Rs 1675 on January 22, 2024. In this way, the stock may see an upside of about 20 percent from the current price.
Nuwama says the results have been good. Tata Communications continues to grow due to macro and micro factors, hence its Ask rate is rising to meet FY25 guidance (mainly growth).
The brokerage says Tata Telecommunications looks strong, offering better services in the telecom (stability) and IT services (growth) sectors. Nuvama has cut FY25E/26E EBITDA by -5% based on low growth assessment.
Brokerage firm Motilal Oswal has maintained Neutral rating on Tata Telecommunications. The target price has been kept at Rs 1,850. This is 10 percent more than Wednesday’s closing price. Brokerage says Tata Communications’ Q3 results were mixed. There was about 10% (YoY) revenue growth in the digital portfolio. There was continued weakness in core connectivity (-1% QoQ).
Brokerage firm Centrum has a REDUCE rating on the stock. The target price has been reduced from Rs 1,858 to Rs 1,713 per share. The brokerage says that the company’s financial performance has been slow. The digital portfolio has seen a growth of 10.2% on an annual basis.
Tata Communications has performed tremendously in the December 2024 quarter. The company’s profit increased by 424% to Rs 236 crore. Last year in the same quarter it was only Rs 45 crore. The company’s earnings from the operation were also excellent. Tata Communications posted revenue of Rs 5,798 crore in the December 2024 quarter, up 3.8% from Rs 5,587.78 crore last year. If compared with the previous quarter i.e. July-September 2024, then in October-December 2024, the company’s profit increased by 4% and revenue increased by 1.2%.
Shares of Tata Communications started trading at Rs 1699 on Thursday with a rise of 1.3 per cent. However, this rally did not last and within a few hours the stock fell by more than 3.7 percent. Earlier, on Wednesday, the company’s shares fell 1.42% and closed at Rs 1,673, while the opening was Rs 1,697.
This share of Tata Group has not moved even in the last one year. The annual return has been around 5 percent negative. However, the stock has performed well in the long run. The 5 year return has been more than 250 percent. The stock’s 52-week high on BSE is 2,175 and low is 1,590. In this way the share is trading at about 23 percent discount from its high. The market cap of the company is more than Rs 46,255 crore.
,Disclaimer: The stock advice here is given by the brokerage. Investing in the market is subject to risks. Consult your advisor before taking any investment decision.)