Tata Communications was trading in the green on both exchanges ahead of their Q2 result. Its shares were trading at ₹ 1,234.70 apiece at 03:03 PM on Tuesday. The company’s results in the previous quarter were strong, however, it is facing headwinds like supply chain issues and OEM lead time issues. The stock is in the consolidation
Big Bull Rakesh Jhunjhunwala’s spouse, Rekha Jhunjhunwala has increased her stake in a Tata Group stock. Rekha Jhunjhunwala held a 1.1% stake in Tata Communications in the June quarter, however, she holds a 1.6% stake as per the latest filings for the September quarter. Therefore her stake has increased by 0.5%. She holds 45,75,687 shares of the company, and her holdings are worth ₹ 564.1 crores as of Tuesday.
On the other hand, the Life Insurance Corporation of India (LIC) has slightly reduced its holdings in the Tata Group Company from a 3.37% stake to a 3.36% stake in the second quarter of this year.
The company’s shares have given multibagger returns of 203.34% in the past five years, as its share price increased from ₹ 407.03 to the current levels. Therefore, if an investor would have invested in the company’s shares a year ago, the value of their holdings would have been ₹ 3.03 lakhs today!
Tata Communications is a large-cap company with a market capitalization of 34,000 crores. It has given an excellent return on equity of 284.12%. Further, It is trading at a price-to-equity (PE) ratio of 19.70, which is slightly higher than the industry PE of 19.70. This indicates that the stock might be overvalued.
Tata communications were incorporated as VSNL in 1986. Subsequently, in February 2002, the Government of India divested a 25% stake in the company and it was taken over under the administrative control of the Tata Group. Tata Communications is a leading global digital ecosystem enabler with a leadership position in emerging markets. It partners with at least 300 Fortune 500 companies.
Written by Simran Bafna
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