Shares of Tata Communications, a global digital ecosystem facilitator, hit a record high of Rs 1,542 and rose 9% on BSE in intraday trading on Wednesday. The share of the company Tata Group exceeded its previous record of Rs 1,540 touched on October 19, 2021. It was included in the Futures & Options (F&O) segment from December 31, 2021.
On Tuesday, Tata Communications and Zain KSA announced that they have entered into a strategic commitment to fuel the digital transformation journeys of businesses and government organizations in the Kingdom of Saudi Arabia (KSA). Zain KSA is a leading telecommunications provider established in the Kingdom of Saudi Arabia.
With this collaboration, the combined ecosystems will provide solutions and platforms to reshape cities with smart street lighting, smart waste management, a connected workplace, healthcare and connected cars, Tata Communications said in a statement. Press release.
This strategic engagement will serve Saudi companies and government institutions with advanced technologies such as IoT, 5G, Low Range Wide Area Network (LoRaWAN specification), Managed Security Services, SDWAN and many more. It will also support measures for environmental sustainability and the digital transformation of the region, he said.
For the July-September quarter (T2FY22), the company recorded sequential growth after three quarters of decline, which was a positive indicator. Management said the second quarter of FY22 was marked by a recovery with favorable underlying trends as economic activity normalized. The company’s second quarter performance demonstrated continued revenue improvement supported by improved profitability and the accumulation of free cash flow, management said.
Meanwhile, IIFL Securities launched a hedge on Tata Communications with a target price of Rs 1,568 (based on SoTP) and an ADD rating.
Tata Communications is evolving the enterprise ICT stack from a simple connectivity and network service provider to a digital solutions player offering cloud, hosting, security and IoT services. , did he declare.
“After going through a difficult period that saw FCF losses and low return ratios, Tata Communications abandoned a few loss-making and capital-heavy businesses. Under new management, it experienced solid margin expansion. Ebitda, a healthy FCF generation and a significant improvement in yield ratios over the past 18 months. Revenue growth has remained elusive, although double-digit backlog growth in 1HFY22 has been encouraging, “added the brokerage firm in a report dated December 15, 2021.