Nuvama Institutional Equities has retained its ‘Buy’ rating on Tata Communications, assigning a target price of ₹2,000/share, driven by long-term growth initiatives in digital services.
The brokerage said management remains focused on monetising the company’s “digital fabric” — a comprehensive network of integrated digital infrastructure offerings. Tata Communications is targeting revenue growth, margin leverage, and improved RoCE by FY28, with strategic M&A and non-core asset divestments continuing to support the balance sheet.
However, Nuvama noted that the company may defer formal guidance due to the steep ask-rate for FY27, hinting at conservative forecasting amid evolving business transformation efforts.
Tata Communications, it said, offers a unique investment proposition combining the stability of a telecom business with the growth characteristics of IT services.
Disclaimer: The views and target prices mentioned are as stated by Nuvama and do not represent the opinions or recommendations of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
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