Buy Tata Communications, target price Rs 1400: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Tata Communications with a target price of Rs 1400. The current market price of Tata Communications is Rs 1228.4. Time period given by analyst is 60 days when Tata Communications Ltd. price can reach defined target.

Tata Communications Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 34969.50 Crore) operating in Telecommunications sector.

Tata Communications Ltd. key Products/Revenue Segments include Telecommunication Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company has reported a Consolidated Total Income of Rs 4544.51 Crore, up .40 % from last quarter Total Income of Rs 4526.55 Crore and up 10.41 % from last year same quarter Total Income of Rs 4116.14 Crore. Company has reported net profit after tax of Rs 535.12 Crore in latest quarter.

Investment Rationale
The stock overall has recently indicated a breakout above 1100 zone and currently with a short correction has formed a higher bottom pattern on the daily chart and reversing with a positive candlestick formation to improve the bias and anticipating for further rise in the coming days. The RSI indicator again has improved with a trend reversal seen and is well placed with immense upside potential witnessed. The brokerage recommends a buy in this stock for an upside target of 1400 keeping a stop loss of 1160.


Promoter/FII Holdings
Promoters held 58.86 per cent stake in the company as of 31-Mar-2022, while FIIs owned 19.38 per cent, DIIs 11.49 per cent.