Shares of Tata Communications Ltd declined for the fourth consecutive session on Tuesday, briefly nearing the ₹1,400 mark while hitting a fresh 52-week low. The stock fell 2.46% to ₹1,401 during the session, compared to its previous close of ₹1,436.45 on the BSE. A total of 0.18 lakh shares changed hands, leading to a turnover of ₹2.59 crore. The market capitalization of the Tata Group firm dropped to ₹40,166 crore.
The stock, which had touched a 52-week high of ₹2,175 on October 3, 2024, has witnessed a sharp decline. Over the past six months, it has lost 26.10%, while in the last three months, it has fallen 21%.
Technical Indicators & Market Outlook
From a technical perspective, the Relative Strength Index (RSI) stands at 28, indicating that the stock is in the oversold zone. With a beta of 1.2, the stock has demonstrated high volatility over the past year. Moreover, it is currently trading below its 5-day, 10-day, 20-day, 50-day, and 200-day moving averages.
Expert Opinions
- Jigar Patel (Anand Rathi): The stock has support at ₹1,350 and resistance at ₹1,450. If it decisively moves above ₹1,450, an upside toward ₹1,530 is expected in the short term. The anticipated trading range is between ₹1,350 and ₹1,530.
- AR Ramachandran (SEBI-registered independent analyst): While the stock remains bearish and oversold on daily charts, the next support level is at ₹1,324. A daily close above ₹1,463 could push the stock toward a near-term target of ₹1,548.
Financial Performance (Q3 FY24)
Tata Communications reported a 424% year-on-year growth in consolidated net profit for Q3 FY24, reaching ₹236.08 crore, compared to ₹45.05 crore in the same quarter last year.
- Revenue rose 4.14% to ₹5,826.80 crore, up from ₹5,594.78 crore in Q3 FY23.
- Earnings per share (EPS) increased to ₹8.28 from ₹1.57 year-on-year.
- EBITDA saw a 2.4% growth, reaching ₹1,181 crore from ₹1,153 crore in the previous fiscal’s Q3.
Business Overview
Tata Communications operates in the international telecommunications sector, with three key business segments:
- Voice Solutions (VS) – Includes national and international long-distance voice services.
- Data and Managed Services (DMS) – Covers corporate data transmission, virtual private networks (VPNs), signaling and roaming services, television, and other network/managed services.
- Real Estate (RE) – Focuses on lease rentals for commercial premises, excluding properties held for capital appreciation.
Despite recent stock volatility, the company’s strong earnings performance and oversold technical position may offer potential trading opportunities.
