Hi everyone,
Here is a brief note on Tata Comm. that I put together:
CMP: Rs. 867; MCap: 24000 Cr.
The company has moved out most of their operations from Mobile/Voice related
services to Data services - IP creation, Enterprise connectivity, IT-Infrastructure etc.
The Data part of the business contributes to 80% of revenues.
They still have on-going capex due to which margins are yet to improve,
growth was muted due to the previous downturn. But going forward success of
the remote work model has encouraged enterprise spending on IT infrastructure.
Even a conservative growth estimate of 7-8% would mean earnings of around
3000-4000 Cr. and with earnings multiple of 12 we arrive at a MCap
of 36000-48000 Cr. 1.5x-2x in 4 years.
I welcome your thoughts and insights.
Thanks and regards,
Nikhil
Disclosure: Not yet invested.