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Tata Communications is a global leader in providing data and voice services to enterprises and telecom companies. Its undersea cable for carrying data and related infrastructure are key strengths on which it is building several new generation innovative data solutions. There is intense competition but focus on productivity and disciplined pricing has led to improved earnings in recent quarters. Recent trends in a post Covid world as opened many opportunities for company and the engagement pipeline is encouraging but deal closure is slow. Despite these positives, we have a neutral weight rating due to soft near term performance particularly in the data which is a vibrant business and absence of transformational deals. Major risk factor is technology disruption and competition – 13-08-2021 Price : Rs. 1427.70 Rating: Neutral Weight Recommendation: Hold

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