Tata Communications Ltd — Financial Report

• Market Cap: ₹60,500 Cr • Current Price: ₹2,133 • High / Low: ₹2,179 / ₹1,621 • Stock P/E: 60.0 • Book Value: ₹256 • Dividend Yield: 1.08% • ROCE (Return on Capital Employed): 13.0% • ROE (Return on Equity): 21.8% • Face Value: ₹10.0 • EPS (TTM): ₹35.7 • Debt to Equity: 2.22 • Promoter Holding: 34.8% • FII Holding: 21.2% • DII Holding: 18.4% Key Points: • Tata Communications is a global digital ecosystem enabler, offering communication and cloud services. • Despite high debt, the company maintains a strong ROE of 21.8%, indicating efficient use of equity. • High P/E ratio of 60 may suggest overvaluation unless supported by high future growth expectations. • The company has a decent ROCE, indicating moderate returns on the capital invested. • Dividend yield of 1.08% provides some passive income but not substantial. • Debt to equity is on the higher side (2.22), which should be monitored. • Promoter holding is steady at 34.8%, backed by significant institutional interest (FII + DII ~40%). My Take: Tata Communications continues to remain a strategic digital player with strong global presence and partnerships. However, its valuation appears stretched at current levels with a P/E of 60 and high debt exposure. Long-term investors may consider it for its growth trajectory in the digital infrastructure space, but entry should be planned on dips or consolidation around ₹1900–₹1950 range for better risk-reward. Monitor debt levels and earnings consistency before taking major positions.