Multibagger Tata Group stock in correction mode, oversold on charts; time to buy?
With the ongoing correction phase, the stock has managed to retain its multibagger tag only in a period of 10 years.
- Jan 26, 2026,
- Updated Jan 26, 2026 10:38 AM IST
Shares of Tata Communications Ltd are on sellers' radar with the telecom stock losing fizz in the short term. Of late, Tata Communications shares are witnessing more sellers than buyers with the stock's RSI plunging to oversold zone. The RSI has fallen below 30 indicating the stock is oversold on charts. RSI of Tata Communications stands at 22.1. The stock has lost 8% in two years and lost 16% in three months. The stock is down 14% this year.
With the ongoing correction phase, the stock has managed to retain its multibagger tag only in a period of 10 years. The stock zoomed 508% in 10 years.
In the previous session, Tata Elxsi shares closed flat at Rs 1561.95 against the previous close of Rs 1547.15. Market cap of the firm rose to Rs 44,515 crore. Total 0.14 lakh shares of the firm changed hands amounting to a turnover of Rs 2.13 crore.
Nuvama has a Buy call on the stock with a target price of Rs 2,100 (earlier 2,235).
According to the brokerage, order book and deal pipeline for the firm remains strong, with 70% contribution from the digital portfolio.
However, Nuvama cut EBITDA estimates for FY26E/FY27E due to slower margin ramp-up
Q3FY26 revenue came in marginally below estimates, with growth led by the Data business, Nuvama said adding that Digital business remained the key growth driver, delivering 15% YoY growth.
ICICI Securities has a price target of Rs 2290 on the stock against the earlier Rs 2390.
The brokerage says Tata Communications is strengthening its digital services portfolio with many launches in near term and a focus on full-stack AI integration which has the potential to grow at a faster pace.
"We cut FY26/27E EBITDA by 7% on slower ramp-up in margins, with SoTP-based revised TP of Rs 2,250 (vs. Rs 2,390) as we cut core business EV/EBITDA multiple to 12x (from 14x) and roll over valuation to FY28E from Sep’27E. Maintain BUY," said ICICI Securities.
CLSA has an outperform rating on Tata Communications. However, price target has been cut to Rs 2165.
The global brokerage said Q3 consolidated revenue of Rs 6,200 crore came below estimate. Consolidated EBITDA of Rs 1230 crore rose 4% YoY/ 5% QoQ, and was also below estimates. The brokerage cut revenue and EBITDA forecasts by 3%-9% over FY26/28CL, yet Tata Communications offers a 14% consolidated Ebitda CAGR till FY28CL.
Shares of Tata Communications Ltd are on sellers' radar with the telecom stock losing fizz in the short term. Of late, Tata Communications shares are witnessing more sellers than buyers with the stock's RSI plunging to oversold zone. The RSI has fallen below 30 indicating the stock is oversold on charts. RSI of Tata Communications stands at 22.1. The stock has lost 8% in two years and lost 16% in three months. The stock is down 14% this year.
With the ongoing correction phase, the stock has managed to retain its multibagger tag only in a period of 10 years. The stock zoomed 508% in 10 years.
In the previous session, Tata Elxsi shares closed flat at Rs 1561.95 against the previous close of Rs 1547.15. Market cap of the firm rose to Rs 44,515 crore. Total 0.14 lakh shares of the firm changed hands amounting to a turnover of Rs 2.13 crore.
Nuvama has a Buy call on the stock with a target price of Rs 2,100 (earlier 2,235).
According to the brokerage, order book and deal pipeline for the firm remains strong, with 70% contribution from the digital portfolio.
However, Nuvama cut EBITDA estimates for FY26E/FY27E due to slower margin ramp-up
Q3FY26 revenue came in marginally below estimates, with growth led by the Data business, Nuvama said adding that Digital business remained the key growth driver, delivering 15% YoY growth.
ICICI Securities has a price target of Rs 2290 on the stock against the earlier Rs 2390.
The brokerage says Tata Communications is strengthening its digital services portfolio with many launches in near term and a focus on full-stack AI integration which has the potential to grow at a faster pace.
"We cut FY26/27E EBITDA by 7% on slower ramp-up in margins, with SoTP-based revised TP of Rs 2,250 (vs. Rs 2,390) as we cut core business EV/EBITDA multiple to 12x (from 14x) and roll over valuation to FY28E from Sep’27E. Maintain BUY," said ICICI Securities.
CLSA has an outperform rating on Tata Communications. However, price target has been cut to Rs 2165.
The global brokerage said Q3 consolidated revenue of Rs 6,200 crore came below estimate. Consolidated EBITDA of Rs 1230 crore rose 4% YoY/ 5% QoQ, and was also below estimates. The brokerage cut revenue and EBITDA forecasts by 3%-9% over FY26/28CL, yet Tata Communications offers a 14% consolidated Ebitda CAGR till FY28CL.