Tata Communications shares rise 26% from 52-week low, here's what brokerages say 

Shares of Tata Communications Ltd have climbed 26% from their 52-week low reached in early March this year. Tata Communications shares, which slipped to a 52-week low of Rs 1,293 on March 4, were trading at Rs 1632 mark in the afternoon session today. Market cap of the firm stood at Rs 46,524 crore. 

Total 2668 shares of the firm changed hands amounting to a turnover of Rs 44.69 crore on BSE today. Market cap of the Tata Group firm stood at Rs 46,482 crore. 

Tata Communications shares are trading higher than the 5 day, 10 day, 20-day, 30 day, 50-day, 100-day but lower than the 150 day and 200-day moving averages. 

Global brokerage CLSA has an outperform call on the stock. It has raised its price target to Rs 2100 from the previous price target of Rs 2070.

The company's CEO said digital growth will accelerate in the medium term, according to the brokerage which also added that Tata Communications offers 10-15% data revenue and consolidated EBITDA CAGRs by FY28. The brokeage expects robust long-term growth for the firm. 

Centrum Broking has reduced its price target to Rs 1618 from the earlier target of Rs 1,713. 

The brokerage expects to have 22% EBITDA margin in the near term. "We expect Revenue/EBITDA/PAT to clock 10.8%/19.8%/51.5% CAGR over FY25-FY27E. We have revised our FY26E/FY27E EPS by (10.3%)/(3.9%) and maintain our REDUCE rating with a revised target price of Rs 1,618 (vs Rs 1,713 earlier) at EV/EBITDA of 8.5 times on March’27E. We have maintained our target multiple of 8.5x (unchanged) EV/EBITDA," said Centrum Broking. 

JM Financial suggests a price target of Rs 2,030. 

The brokerage believes that Tata Communications' existing capabilities, particularly within its digital segment, provide it with a competitive edge. 

This segment is part of a broader transition into a "CommTech" company, blending traditional connectivity with digital innovation. This transformation is anticipated to drive sustained growth and profitability over the coming years.

"Despite potential challenges from competitors like Bharti Airtel and Jio, and regulatory risks associated with the allocation of 5G spectrum, JM Financial's analysis underscores TCOM's solid market position. The report cautions about possible regulatory hurdles, yet remains optimistic about the company's strategic direction and resilience," JM Financial said.

Tata Communications is engaged in the business of providing international telecommunications services. The company’s segments include Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). The VS segment includes international and national long distance voice services. The DMS segment includes corporate data transmission services, virtual private network signaling and roaming services, television, and other network and managed services. The RE segment includes lease rentals for premises given on lease and does not include premises held for capital appreciation.