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Tata Communications Ltd

NSE: TATACOMM BSE: 500483

1597.50

(-3.78%)

Mon, 02 Mar 2026, 00:20 pm

Tata Communications Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).
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Cons

  • Dividend payments have increased, but Tata Communications only paid a dividend in the past 9 years.
  • The company is paying a dividend however it is incurring a loss.
  • Tata Communications has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Tata Communications's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Tata Communications's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Tata Communications's earnings are expected to grow significantly at over 20% yearly.
  • Tata Communications's earnings growth is expected to exceed the India market average.
  • Tata Communications's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Tata Communications is expected to become profitable in 1 year.
  • Tata Communications is expected to become profitable in 3 years time.
  • Tata Communications is expected to become profitable in 2 years.
  • Tata Communications is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
  • Performance (ROE) is expected to be above the current Asia Telecom industry average.
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Cons

  • Cash flow for Tata Communications is expected to increase but not above the 50% threshold in 2 years time.
  • Tata Communications's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Tata Communications's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • Tata Communications's revenue growth is positive but not above the India market average.

health

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Pros

  • Whilst loss making Tata Communications has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.2% per year.
  • Whilst loss making Tata Communications has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Debt is well covered by operating cash flow (27.8%, greater than 20% of total debt).
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Cons

  • Tata Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Tata Communications has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
  • Tata Communications's long term commitments exceed its cash and other short term assets.
  • Irrelevant to check if Tata Communications's debt level has increased considering it has negative shareholder equity.
  • Tata Communications is making a loss, therefore interest payments are not well covered by earnings.
  • Tata Communications has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Tata Communications board of directors is about average.
  • The tenure for the Tata Communications management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • Tata Communications has significant price volatility in the past 3 months.

      past

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      Pros

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        Cons

        • Unable to compare Tata Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.
        • Tata Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
        • Tata Communications used its assets less efficiently than the Asia Telecom industry average last year based on Return on Assets.
        • It is difficult to establish if Tata Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
        • It is difficult to establish if Tata Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
        • Unable to compare Tata Communications's 1-year growth to the Asia Telecom industry average as it is not currently profitable.

        value

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        Pros

        • Tata Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
        • 500483 outperformed the Telecom industry which returned -14.4% over the past year.
        • 500483 outperformed the Market in India which returned -14.5% over the past year.
        • BSE:500483 is up 28.2% outperforming the Telecom industry which returned -0% over the past month.
        • BSE:500483 is up 28.2% outperforming the market in India which returned 8% over the past month.
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        Cons

        • Tata Communications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
        • Tata Communications has negative assets, we can't compare the value of its assets to the Asia Telecom industry average.
        • Tata Communications is loss making, we can't compare its value to the Asia Telecom industry average.
        • Tata Communications is loss making, we can't compare the value of its earnings to the India market.

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