3 TATACOMM share price target reports by brokerages below. See what is analyst's view on TATACOMM share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The consistent performance of the data segment is impressive. However, we await clarity on innovation services (major chunk of five year growth plan) where the company has continued to burn cash and the management is still assessing the portfolios in various segment. We continue to maintain our HOLD rating on the stock, rolling over our valuations to FY22 at EV/EBITDA multiple of 6.5x for data and 2x for voice EBITDA, respectively. We deduct Rs 1300 crore (| 46/share) for AGR liability to arrive at our revised target price of Rs 460/share.
Tepid earnings momentum (due to modest growth in traditional segment, slowdown in growth segment and continued losses in Innovation segment) remains a cause for concern. Further, FCF generation and deleveraging have seen a limited improvement. We roll forward our estimates to FY22 and built revenue/EBITDA CAGR of 6%/14% over FY19-22. We value TCOM on an SOTP basis and assign a multiple of 6x/2x to data/voice (FY22) on pre-Ind-AS 116 EBITDA to arrive at a target price of INR490 (prior: INR450). Maintain Neutral.
WevalueTCOMonanSOTPbasisandcutourtarget multiple to 6x/2x on FY21E Data/Voice EBITDA, given its slow earnings growth, allocation of Traditional and Growth EBITDA to other segments and continued high capex. Subsequently, we arrive at a TP of INR420 (prior: INR520) and maintain our Neutral stance. Additional monetization opportunity of TCOM’s surplus land parcel could provide an option value.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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