Case study

TATACOMM

Tata Communications

Mixed signals1y model -0.8%

Each stock's 10,000-path forecast, rendered as light.

0Score

Tata Communications (TATACOMM) Stock Analysis & Case Study

Is TATACOMM a good buy? The data-driven verdict.

Tata Communications (TATACOMM) trades at ₹2,062,on the numbers it mixed signals, a Downstox Snapshot Score of 48/100.

On the numbers, Tata Communications (TATACOMM) mixed signals, a Downstox Snapshot Score of 48/100, weighing expensive at 55.6× earnings, ROE of 32.6%, a 49% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

TATACOMM fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹58,694 Cr
Current price
₹2,062
P/E ratio
55.6×
P/B ratio
17.04×
Book value
₹121
Dividend yield
0.85%
ROCE
14.6%
ROE
32.6%
Piotroski F-Score
4/9

Is TATACOMM overvalued? TATACOMM P/E vs its sector

TATACOMM's P/E of 55.6× sits above the sector peer median of 15.9×, so on earnings it screens richer than peers, while its 0.85% dividend yield is below the peer median of 1.65%.

TATACOMM P/E
55.6×
Peer median P/E
15.9×
TATACOMM div yield
0.85%
Peer median yield
1.65%

TATACOMM share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of TATACOMM history (4%/yr drift, 31%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
TATACOMM 2027₹1,327₹1,973₹2,900-1%
TATACOMM 2028₹1,113₹1,951₹3,429-2%
TATACOMM 2029₹976₹1,948₹3,846-2%
TATACOMM 2030₹877₹1,941₹4,242-2%
TATACOMM 2031₹781₹1,934₹4,572-3%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability TATACOMM goes up, or doubles?

49%
Higher in 1 year
Modelled chance the price is above today in 12 months
49%
Higher in 5 years
Modelled chance the price is above today in 5 years
14%
Doubles in 5 years
Modelled chance of reaching ₹3,978 within 5 years

The bull case for TATACOMM

  • High return on equity (32.6%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹3,846.

The bear case & risks

  • A rich 55.6× P/E leaves a thin margin of safety if growth slows.
  • A steep 17.0× price-to-book means most of the value is intangible/expectations, not assets on the books.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹976.

TATACOMM volatility & expected range, how bumpy is the ride?

Over the last 2.0 years TATACOMM compounded at 4%/year with annualized volatility of 31%. That volatility implies a 1-year 80% range of ₹1,327₹2,900, the honest backbone behind any single price target.

TATACOMM price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
0.8%
80% range₹1,327–₹2,900
P(price ↑)49%
P(price 2×)1%
3-Year Forecast
2029
₹0
Median (P50)
2.0%
80% range₹976–₹3,846
P(price ↑)49%
P(price 2×)9%
5-Year Forecast
2031
₹0
Median (P50)
2.8%
80% range₹781–₹4,572
P(price ↑)49%
P(price 2×)14%

TATACOMM price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
TATACOMM simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds TATACOMM hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the TATACOMM price target & forecast page.

TATACOMM Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. TATACOMM scores 4/9,mixed financial health.

TATACOMM MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy TATACOMM with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
UpstoxCHEAPEST31.0%3.2×
ZerodhaCHEAPEST31.0%3.2×
DhanCHEAPEST31.0%3.2×

Compare every broker on the TATACOMM MTF page.

TATACOMM vs peers,sector comparison

StockP/EDiv yieldMarket cap
TATACOMM (this stock)55.6×0.85%₹58,694 Cr
RELIANCE23.1×0.45%₹17.95L Cr
TCS14.7×3.01%₹7.69L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
INFY14.4×4.51%₹4.32L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr

About Tata Communications: sector, index & market-cap context

Tata Communications (TATACOMM) is a mid-cap NSE-listed company, and a constituent of the Nifty 100 index group, with a market capitalisation of ₹58,694 Cr. See more Nifty 100 stocks.

How the TATACOMM Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Tata Communications's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

TATACOMM analysis, FAQs

Is Tata Communications (TATACOMM) a good buy?

On the numbers, Tata Communications (TATACOMM) mixed signals, a Downstox Snapshot Score of 48/100, weighing expensive at 55.6× earnings, ROE of 32.6%, a 49% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is TATACOMM overvalued or undervalued?

TATACOMM trades at 55.6× earnings versus a peer median of 15.9×, so it screens richer than its sector peers.

What is the TATACOMM share price target for 2031?

TATACOMM's probability-weighted 2031 median target is ₹1,934, with an 80% range of ₹781₹4,572 (10,000-path Monte-Carlo).

What is the probability TATACOMM doubles in 5 years?

The modelled probability of TATACOMM reaching ₹3,978 (2×) within 5 years is 14%.

What is the bull case for TATACOMM?

High return on equity (32.6%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.

What are the risks in TATACOMM?

A rich 55.6× P/E leaves a thin margin of safety if growth slows. A steep 17.0× price-to-book means most of the value is intangible/expectations, not assets on the books.

More on TATACOMM