Tata Group Stock Fall 35% In 6 Months, Buy For 25% Upside In 1 Year
Renowned brokerage firm Emkay Global recommends buying this stock of Tata Group for good return in the short term.
Kuntala Sarkar
Tata Communications
The current market price of Tata Communications (TCOM) is Rs. 921, and Emkay Global estimating that the stock's price can go up to Rs. 1155, for 25.50% return.
Stock price
TCOM's 52 week high level is Rs. 1,591.95, 52 week low level is Rs. 856.25. In past 6 months the stock's price has fallen by 35.39%, and fallen 31.19% in past 1 year.
Growth guidance
The management has re-emphasized its double-digit medium-term topline growth guidance for the Data segment. The stock saw a 30% correction after Q4FY22 results.
Market capitalization
It is a reputed largecap stock of Tata group, with a market capitalization of Rs. 24,937 crore. It has a strong FCF generation despite higher capex spends.
Emkay Global thinks
Emkay Global thinks the stock will remain range-bound until TCOM is able to achieve sustainable double-digit revenue growth in the Data segment.
Key risks
Key risks: increased losses in incubation services; inability to close large deals; continued delays in revenue recovery; and higher competitive intensity.
Inflation
Due to the recent interest rate hikes by RBI and the US central bank to control inflation, now the Indian equity markets are, which is a good time to invest.