Tata Group Stock: This Multibagger Has Lost Steam In Short Term, Here Are Fresh Price Targets

Shares of Tata Communications person mislaid their momentum successful nan past 1 year. The multibagger banal has logged stellar returns of 324% successful 5 years and 457% successful 10 years. However, nan Tata Group banal saw profit-booking successful nan past six months, slipping 28% from its grounds precocious of Rs 2175 reached connected October 3, 2024. The banal is down 10.15% successful a twelvemonth and fallen 12.16% successful six months. 

With Tata Communications banal showing downward inclination successful nan short term, here's a look astatine what brokerages opportunity connected nan prospects of nan Tata Group stock. 

Centrum Broking has a trim telephone connected nan Tata Communications banal station Q4 net announced this week. It has revised its value target downwards to Rs 1618.  

"We expect it to person 22% EBITDA separator successful nan adjacent term. We expect Revenue/EBITDA/PAT to timepiece 10.8%/19.8%/51.5% CAGR complete FY25-FY27E. We person revised our FY26E/FY27E EPS by (10.3%)/(3.9%) and support our REDUCE standing pinch a revised target value of Rs 1,618 (vs Rs 1,713 earlier) astatine EV/EBITDA of 8.5x connected March’27E," said nan brokerage. 

JM Financial has reduced its value target downwards from Rs 2,030 connected nan Tata Group stock. 

"We support our BUY standing connected TCOM (revised TP of Rs 2,000/share) based connected 11x FY27 EV/EBITDA aggregate for nan information segment, (vs. 5-year humanities mean of 10.4x) arsenic we expect information conception EBITDA to turn astatine a robust CAGR of 24% complete FY25-28E," said nan brokerage.  

On nan bid book, nan brokerage said, "Further, nan guidance indicated that bid book maturation normalised and chimney additions moderated QoQ successful 4QFY25, but nan wide chimney continues to beryllium patient crossed India and internationally." 

MOFSL has maintained its 'Neutral rating' connected nan banal arsenic it awaits acceleration successful information gross on pinch separator description .

However, it raised Tata Communications' FY26-27 gross estimates by 1-2 per cent. The brokerage said Tata Communications' ambition of doubling information gross by FY27 remains a gangly inquire without further acquisitions. Overall, it is building successful a 9 per cent information gross CAGR complete FY25-28, pinch information gross reaching Rs 26,200 crore by FY28 against nan ambition of Rs 28,000 crore by FY27.

"We ascribe 9x EV/Ebitda to TCOM’s information business and 5x EV/Ebitda to sound and different businesses. We ascribe an Rs 3,000 crore (or Rs 104 per share) valuation to TCOM’s 26 per cent liking successful STT information centers. Our SoTP-based target value remains unchanged astatine Rs 1,660 arsenic our Ebitda trim is offset by nan rotation guardant of nan valuation guidelines to Jun’27 (from Mar’27 earlier)," MOFSL said.

The shares were trading connected a level statement astatine Rs 1570.20 against nan erstwhile adjacent of Rs 1584.25 connected BSE. Total 5112 shares of nan patient changed hands amounting to a turnover of Rs 80.57 lakh connected BSE. Market headdress of nan Tata Group patient fell to Rs 45,005 crore. 

The Tata Group patient reported a 223.6% emergence successful nett profit for nan 4th fourth ending March 31, 2025. Profit roseate to Rs 1,040.5 crore. Revenue from operations reported a 6.1% year-on-year increase, amounting to Rs 5,990.4 crore for Q4 FY2025. 

Tata Communications is engaged successful nan business of providing world telecommunications services. The company’s segments see Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). The VS conception includes world and nationalist agelong region sound services. The DMS conception includes firm information transmission services, virtual backstage web signaling and roaming services, television, and different web and managed services. The RE conception includes lease rentals for premises fixed connected lease and does not see premises held for superior appreciation.