Shares of this Tata Group stock gained traction in Friday’s trading session after Blackrock India Fund bought approximately 44.62 lakh equity shares in the company via a Bulk Deal.
With a market capitalization of Rs 48,203.48 crores, the stocks of Tata Communications Limited, one of the companies under the Tata umbrella, started their trading session on Friday at Rs 1,725.40 and currently trade at Rs 1,691.35, a flat movement as compared to the previous close of Rs 1,706.25 apiece.
In the past six months, the company’s stock has gained over 25 percent from Rs 1,334 during June 2023 to the current price levels.
As per the Bulk Deal data available with the National Stock Exchange (NSE) as of 30th November 2023, Blackrock India Fund, one of the leading Funds providing investing, risk management services, etc, bought around 44.62 lakh equity shares in the Tata Group company at an average trade price of Rs 1,707.69 per share.
During the recent financial years, the company’s financials showcased opposing movements as far as the operating revenues and net profits are concerned.
The former, on one end, increased from Rs 4,771.36 crores during Q1FY23-24 to Rs 4,872.5 crores during Q2FY23-24, and the latter, on the other end, moved down from Rs 373.24 crores to Rs 220.39 crores.
Coming onto the profitability ratios of the company, the return on capital employed (RoCE) rose from 24.98 percent during FY21-22 to 27.92 percent during FY22-23. During the same time frame, the company was successful in consistently increasing its net profit margins over the past couple of years with the most recent shift from 8.84 percent to 9.90 percent.
According to the shareholding pattern data for the quarter ended September 2023, the company’s Promoters hold a 58.86 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing their stake, currently hold a 17.53 percent stake in the company.
Founded in 1986, Tata Communications Limited is engaged in the business of providing voice and data transmission long-distance services, broadband, and internet dial-up services within as well as outside India.
Written by Amit Madnani
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