Tata Communications shares saw a sharp 5% jump on July 2 after global brokerage firm Macquarie gave a strong thumbs-up to the stock. The firm started coverage on Tata Communications with an ‘Outperform’ rating and set a bold target price of Rs 2,300 per share.
That’s a big vote of confidence, considering the stock was trading around Rs 1,811 at the time. This gives the stock an upside potential of over 30%.
But the big news? In its bullish case, Macquarie said Tata Communications could double in value in the next three years. That’s a massive signal for long-term investors.
What’s Driving the Optimism?
Macquarie believes Tata Communications is becoming a digital transformation engine for global businesses. The company is using one of the largest digital networks in the world to help enterprises grow and scale digitally.
The report, as cited by CNBC-TV18, highlighted the company’s strong position in digital services, where it’s already ranked in the Leaders’ quadrant — a key indicator of market leadership and trust.
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What About the Numbers?
Tata Communications has made big moves with acquisitions to expand its digital portfolio. That brought its ROIC (Return on Invested Capital) down to 11% in FY25 from an average of 16% between FY21 and FY23.
But Macquarie expects a comeback — ROIC could bounce back above 20% by FY28, inching closer to the Tata Group company’s long-term goal of 25%.
How Has the Stock Performed?
- Up 5% in 2025 so far
- Over 8% gain in the past month
- 192% rise in the last five years
- Despite a 4% dip in the past year
The stock is currently trading at a P/E ratio over 51, showing high investor expectations. On July 2, trading volume crossed 32 lakh shares — that’s more than 11 times the 10-day average.
Tata Communications is clearly on the radar of big investors. With bold bets from brokerages like Macquarie, the company is showing signs of being a strong long-term digital growth story.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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