TATA COMMUNICATIONS
Net sales down by 15% at Rs 858 cr Vs Rs 1008 cr
On sequential basis sales expected to improve 1%.
Net profit seems down by at 26% atRs 77 cr Vs 104cr
FACTORS TO WATCH
Environment of core remain challenging,voice revenue stayed flat Q4FY08
aggregate loses of subsdaries of tyco,teleglobe to watch out for
PC to PC voice traffic generating robust traction
international termination charges on time division multiplexing dropped to 2 cent per minute
Revenue from TDM traffic expected to be flat
only 18 % of data revenue comes from managed services.
managed services offer max value addition and high margin
REVENUE BREAK UP
wholesale voice 52%
Enterprice and carrier 37%
PROFIT BREAK UP
whole sale voice14%
enterprise and carrier 77%
TATA COMMUNICATIONS ON BSE
currently trading at Rs 424.50(-2.32%)
stock has P/E of Rs 51.71
and has EPS of Rs 8.21
i recommend a strong BUY with a price target of Rs 700
I hope you liked my analysis and i advice investors to invest at your risk.
