InvestorQ : InvestorQ-Ask,Answer & Share All About Finance!
Khushi Patel made post

Why has the stock of Tata Communications rallied so sharply in the last few weeks?

user profile image
Anjana Aiyar answered.
3 weeks ago

Tata Communication has been in the midst of a frenetic rally. The stock is already at a 2-year high. In the last 3 months itself, the stock has rallied close to 113%. Even on 14 July, the stock of Tata Communications was up on the 5% circuit at Rs.700 on the BSE. This has been largely driven by a strong operating performance delivered by TCOM.

For the Mar-20 quarter, Tata Communications reported EBITDA 26.8% higher at Rs.869 crore. At the same time, the EBITDA margins expanded by nearly 360 basis points at 19.8%. The sharp growth was driven by strong performance of traditional and growth services in the midst of a sharp uptick in usage due to COVID-19 pandemic and resultant lockdown.