Tata Comm gains 2% after board approves demerger of surplus land
Shares of Tata Communications was up over 2 percent intraday on Thursday hitting a high of Rs 754 per scrip at opening bell after the board approved demerger of around 773 acres of surplus land to a separate company and listing it subsequently.
Research and broking firm IDFC Securities has reiterated an underperform rating on Tata Communications with a target of Rs 655 per share. However, the house feels that approval for demerger of surplus land is a positive for the company adding that the stock price is already reflecting value unlocking from the listing of de-merged entity.
We like Tata Communication’s services portfolio, but business execution needs to improve for constructive view, it added.
Tata Communications last week was selected as global loT connectivity partner by International fleet management application provider.
Anthony Bartolo, Chief Product Officer, Collaboration, Mobility and IoT at Tata Communications said, “With Tata Communications MOVE, DRVR only needs to deal with one service provider that takes care of multiple deployments across international borders.”
At 11:08 hrs Tata Communications was quoting at Rs 709.40, up Rs 14.85, or 2.14 percent. It has touched an intraday high of Rs 758.00 and an intraday low of Rs 706.80.