ICICI Securities maintains hold on Tata Communications, revises target to Rs 371
Hold Tata Communications Ltd. at a price target of Rs 371.0 .
For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 4272.76 crore, up 2.50% from last quarter sales of Rs 4168.62 crore and up 5.03% from last year same quarter sales of Rs 4068.22 crore. The company has reported net profit after tax of Rs 52.52 crore in the latest quarter.
Tata Communications' total contract value wins have been healthy at US$500 million driven by Growth Services, said ICICI Securities. The disappointment for the quarter was slower growth in Growth Services and lower margin in TCTS, while the management expects recovery in coming quarters and believes operating profit margin expansion will continue, it said. The brokerage has increased operating profit estimate by 1.4-1.5%.