Shares of Tata Communications, a Tata Group firm, are trading robustly near their 52-week high, attracting significant attention from market analysts. On June 20, 2026, the stock was priced at Rs 1,963.45, just shy of its yearly peak of Rs 2,050 recorded on May 26, 2026. The company’s market capitalization stands at Rs 55,958 crore.
Jhunjhunwala's Stake and Analyst Confidence
Late investor Rakesh Jhunjhunwala's wife, Rekha Jhunjhunwala, maintains a notable interest in the company. As of the end of the March 2026 quarter, she held a 1.58% stake, amounting to 45 lakh shares in Tata Communications.
Leading brokerage firm CLSA has issued an 'outperform' call on the stock, projecting a potential upside of over 30% within a year, setting a target price of Rs 2,600. CLSA's optimistic outlook stems from several factors, including the strong performance of Tata Communications' data business, which now rivals Bharti Airtel's business in revenue terms. The brokerage highlighted that Tata Communications' digital services, accounting for 50% of its total data revenues, are 66% larger than Bharti's portfolio and both are experiencing a 20% year-over-year growth.
Profitability and Growth Drivers
Despite strong revenue growth, CLSA noted that Tata Communications' data business EBITDA is only 44% of Bharti's division, with its margin significantly lower by 24 percentage points. However, the brokerage views the new CEO's strategic focus on prioritizing profitable growth as a key positive development. Furthermore, CLSA cited the firm's expanded FY26 cash flows and free cash flows, alongside compelling valuations, as reasons for its bullish stance.
ICICI Securities' Outlook and Strategic Focus
Another prominent brokerage, ICICI Securities, also maintains a 'BUY' rating on Tata Communications, albeit with a revised target price of Rs 2,100 (down from an earlier Rs 2,250). The adjustment in their FY27/28E EBITDA forecast by 1-2% and a higher EPS cut is attributed to an increased effective tax rate assumption. ICICI Securities, however, kept the core business EV/EBITDA multiple unchanged at 12x.
ICICI Securities emphasized that the new management's priority is sustainable and profitable growth, with a strong emphasis on long-term value creation. The brokerage identifies significant opportunities in the increasing demand for supply chain digitalization and the adoption of AI agents across various services. They also believe there is considerable scope to enhance communication and market awareness regarding Tata Communications' products and capabilities, particularly in AI-driven solutions.
Technical Indicators
From a technical perspective, Tata Communications shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, indicating a strong uptrend. The Relative Strength Index (RSI) stands at 59.2, suggesting the stock is neither in the overbought nor oversold territory, signaling balanced momentum.