
Tata Communications Limited (TATACOMM.NS)
ValueMarkers Composite Index
55% below intrinsic value ($39)
Tata Communications Limited (TATACOMM.NS) — VMCI valuation read
Headline read on TATACOMM.NS: VMCI of 50/100 versus a Communication Services sector median of 50. The 0-point below-median position is what makes Tata Communications Limited a relative-value laggard in the mid-cap cohort, before any pillar-level review.
Form 4 filings on TATACOMM.NS: zero in the trailing 30 days. The absence of insider transactions is itself a data point, just a low-information one. The thesis runs on financials and price action until that changes.
**Investor frame.** Three reads on TATACOMM.NS: value (TATACOMM.NS trades at 17.0x earnings, 6% below the Communication Services median of 18.0x), quality (ROIC of 11.0% sits 1.0pp above the Communication Services median (10.0%)), and risk (net debt to EBITDA of -1.6x leaves covenant headroom). The value read also implies an EV/EBITDA gap of +4.0x against the Communication Services 12.0x baseline.
TATACOMM.NS fell 1.1% over the trailing 7 days, with a -5.7% read on a 30-day basis.
Tata Communications Limited provides telecommunications services worldwide. The company operates through Voice Solutions, Data and Managed Services, Payment Solutions, Transformation Services, and Real Estate segments. It provides voice and data transmission services; internet connectivity services; and other value-added services, such as unified conferencing and collaboration, managed hosting, mobile global roaming and signaling, transponder lease, and television up-linking, and other managed services, as well as sells and leases bandwidth on undersea cable systems. The company also offers end-to-end automated teller machines deployment, POS enablement, financial inclusion, card issuance and related managed services, and switching services to banking sector; cyber security; data center colocation services; and network management and support services. In addition, it provides networking services, including WAN ethernet, global VPN, and private lines; Internet of Things, smartphone proliferation, and tighter supply chain integration/automation; and network security, cloud security operations centers, cloud security, and custom solutions. Further, the company offers cloud, hosting, security, and SD-WAN; intelligent routing and on-demand connectivity solutions; media and entertainment services, including gaming, sports, news, cable, broadcasting, asset management, workflow management, channel origination, video contribution and distribution feeds, OTT platform as a service, live OTT delivery, and transcoding as services; and leases premises. It serves service providers and enterprises. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008. Tata Communications Limited was incorporated in 1986 and is based in Mumbai, India.
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