Overview

Tata Communications Limited is an Indian telecommunications company. The company is part of the
Tata Group. Tata's communications network spans more than 500,000 kilometers (310,000 mi) of
subsea fiber and more than 210,000 kilometres (130,000 mi) of terrestrial fiber. The company has
invested $1.19 billion in its global subsea fiber network. It provides network services and software-
defined network platforms, such as Ethernet, SD-WAN, content delivery networks (CDNs), the internet,
Multiprotocol Label Switching (MPLS), and private lines. It has more than 400 points of presence (PoPs)
with data centre, Cloud (Private Cloud and Public Cloud Management) and co-location in 44 sites.

Shareholding pattern of the company

Promoters pledge remained unchanged at 3.9% of holdings in Dec 2020 qtr. Promoters holding remains
unchanged at 74.99% in Dec 2020 qtr. FII/FPI have increased holdings from 17.56% to 17.65% in Dec
2020 qtr. Number of FII/FPI investors increased from 176 to 185 in Dec 2020 qtr. Mutual Funds have
increased holdings from 0.38% to 0.41% in Dec 2020 qtr. Number of MF schemes decreased from 9 to 8
in Dec 2020 qtr. Institutional Investors have increased holdings from 19.03% to 19.05% in Dec 2020 qtr.

Management of the company

MD & CEO

Shiva is the MD & CEO of Tata Communications Transformation Services (TCTS). He sets the
strategic direction of TCTS’ vision to build and drive value-sensitive and innovative solutions
globally. Towards this, he empowers clients to take advantage of the transformative & growth
opportunities in a disruptive digital world.
Global Delivery Head

TV Chalapathi Rao is the Global Delivery Head at Tata Communications Transformation

Services (TCTS).

Chalapathi is one of the founding members of TCTS and has assumed various leadership roles,
including the Head of TCTS in 2012-13. Prior to TCTS, he joined Tata Communications over a
decade ago in the leadership role driving networks and equipment planning. Prior to joining the
Tata Communications, Chala was the COO at IComm.

Country Head ANZ

Sobhanbabu Chunduru is Country Head, ANZ at Tata Communications Transformation Services

(TCTS).

Head - Program Management Office

As the Program Management Office Head at Tata Communications Transformation Services

(TCTS), Sharad Katiyar manages organisation level various transformation programs of
business/delivery enablement, global partnerships & alliances and delivery partner management.
Chief Financial Officer

Sanjay is Chief Financial Officer of Tata Communications Transformation Services Limited and
has more than two decades of work experience spanning in Telecom, Banking and FMCG
industries. His functional expertise includes Fiscal planning, Assurance, Internal control and
Compliances.
Strengths, Weaknesses, Opportunities & Threats (SWOT) analysis of the
company
1. Strengths:
 Efficient in managing Assets to generate Profits - ROA improving since last 2 year

 Strong cash generating ability from core business - Improving Cash Flow from operation for last
2 years

 FII / FPI or Institutions increasing their shareholding

 Near 52 Week High

 Strong Momentum: Price above short, medium and long term moving averages

 MFs increased their shareholding last quarter

 Efficient in managing Assets to generate Profits - ROA improving since last 2 year
 Stocks with improving cash flow, with good durability (subscription)
 Company with high TTM EPS Growth

 Consistent Highest Return Stocks over Five Years - Nifty500 

 Rising Net Cash Flow and Cash from Operating activity 

2. Weaknesses:
 Companies that Declared Results in Past One Week, Showing Declining Net Profit YoY OR QoQ
(subscription)

 Decline in Net Profit with falling Profit Margin (QoQ)

 Declining Revenue every quarter for the past 2 quarters

 Low Piotroski Score : Companies with weak financials

 Book Value Per Share deteriorating for last 2 years

 MACD crossed below signal line previous end of day

 High promoter stock pledges

3. Opportunities:

 Companies with Upcoming Results

 Brokers upgraded recommendation or target price in the past three months

 Positive Breakout Third Resistance ( LTP > R3)

 30 Day SMA crossing over 200 Day SMA, and current price greater than open

 Price crossing above SMA20 today, and greater than SMA5

 Highest Recovery from 52 Week Low

 High Volume, High Gain

 Stocks near 52 Week High with Significant Volumes

4. Threats:

Companies with high market cap, lower public shareholding

Red Flag: Resignation of Top Management

Degrowth in Revenue, Profits and Operating Profit Margin in recent results (QoQ)

Stocks with high PE (PE > 40)

Competitive Analysis

Airtel: Airtel is perceived as one of Tata Communications’ biggest rivals. Airtel was founded in 1995,
and is headquartered in New Delhi, Delhi. Airtel is in the Telecommunication Services industry. Airtel
generates $10.6B more revenue vs. Tata Communications.

MTNL: Mahanagar Telephone Nigam Limited is a top competitor of Tata Communications. Mahanagar
Telephone Nigam Limited is a Public company that was founded in 1986 in New Delhi, Delhi. Like Tata
Communications, Mahanagar Telephone Nigam Limited also operates in the Telecommunications
Equipment space. Compared to Tata Communications, Mahanagar Telephone Nigam Limited has 16,054
more employees.
BSNL: BSNL is Tata Communications’ #3 rival. BSNL is headquartered in New Delhi, Delhi, and was
founded in 2000. BSNL operates in the Telecommunication Services industry. BSNL generates 113% the
revenue of Tata Communications.

Conclusion

Tata Communications Transformation Services (TCTS), a 100% subsidiary of Tata Communications Ltd,
provides business transformation, managed network operations, network outsourcing, and consultancy
services to telecommunication companies around the world. Tata Communications Payment Solutions
Limited (TCPSL) formerly known as Tata Communications Banking InfraSolutions, is a wholly owned
subsidiary of Tata Communications. TCPSL is one of the fastest growing Payment Solutions specialists in
India offering end-to-end B2B and B2C solutions. Being a 100% Banking and Financial Services focused
organization, TCPSL offers one stop payment solutions to all categories of banks including PSU, Private,
MNC and Co-operative banks. TCPSL’s White Label ATM offering under the brand name Indicash marks
its foray in the B2C space. With this it is the first White Label ATM service provider in the country. Under
this service offering, TCPSL offers ATM services across the country through Indicash ATM network with
special focus on semi urban and rural areas.