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00:00

Motilal Oswal Financial Services has provided a neutral rating on Tata Communications with a target price of Rs 1550.

00:10

The company recently reported its Q2FY22 results, where its consolidated profit surged by 58% YoY.

00:18

The increase was attributed to the strong overall performance across segments, including data, voice, and digital services.

00:27

Despite the positive results, the stock seems fully valued at current levels, hence suggesting a neutral view.

00:34

Tata Communications has witnessed growth in major segments, such as voice, data, and digital services.

00:41

The company's enterprise business has also performed well, aided by strong demand for cloud and security services.

00:49

However, challenges persist, especially in the data business, due to increasing competitive intensity and pricing pressure.

00:57

Furthermore, the European business, as well as data center partnerships, continue to be significant areas of concern.

01:05

With the evolving business landscape and potential regulatory changes, the company's ability to adjust and adapt will be crucial.

01:13

In conclusion, Motilal Oswal Financial Services has given a neutral outlook on Tata Communications, emphasizing that while the company has exhibited strong performance and growth across various segments, challenges and uncertainties persist.

01:28

As a result, the target price is set at Rs 1550.