Tata Communications, a midcap gem from the Tata Group, has been making waves in the stock market, with its share price jumping 5% to an intraday high of 1818 INR on July 2, 2025. By the close, it traded at 1807 INR, a 4.76% gain, sparking excitement among investors. Brokerage firm Macquarie has initiated coverage with an ‘Outperform’ rating, setting an ambitious price target of 2300 INR—a 30% upside from its recent close. Their bold prediction? Tata Communications’ stock could double in value over the next three years, driven by its leadership in global digital infrastructure and AI-driven growth.
What makes Tata Communications a standout? The company’s digital services business is thriving, leveraging one of the world’s largest digital infrastructure networks to help businesses go digital. Macquarie highlights its potential to be a top performer in the telecom sector, citing a robust growth trajectory. Despite a dip in Return on Invested Capital (ROIC) from 16% (FY21-23) to 11% in FY25 due to recent acquisitions, analysts expect ROIC to climb above 20% by FY28 if no further acquisitions occur, aligning with the company’s 25% long-term target. This optimism stems from Tata Communications’ strategic focus on AI integration and digital transformation, areas poised for exponential growth.
ICICI Securities shares the enthusiasm, upgrading Tata Communications to a ‘Buy’ rating with a 1840 INR target. They note that recent price corrections have made the stock’s valuation attractive, with potential rewards outweighing risks. The company’s financials back this confidence: Q4 FY25 saw a 223.91% net profit surge to 1040.34 crore INR, with a 29.5% growth in its digital portfolio. These numbers reflect Tata Communications’ ability to capitalize on emerging tech trends, making it a compelling choice for investors.
India’s stock market is buzzing with opportunities, and Tata Communications stands out for its global reach and innovative offerings. From cloud computing to managed services, its portfolio caters to businesses navigating the digital age. The company’s market cap, hovering around 49,185 crore INR as of July 1, 2025, underscores its midcap strength, yet analysts see room for significant growth. The 52-week high of 2175 INR and a low of 1291 INR show volatility, but the consensus ‘Buy’ rating from nine analysts, with a 12-month average target of 1857 INR, signals strong market confidence.
For Indian investors, Tata Communications represents more than just numbers—it’s a story of resilience and ambition. The stock’s recent rally, fueled by Macquarie’s bullish outlook, has ignited discussions on platforms like X, where posts highlight its potential to double in value. While short-term fluctuations are expected, the long-term outlook is bright, driven by the company’s digital-first strategy and global footprint. Investors are advised to consult financial advisors, as market conditions can shift, but Tata Communications’ trajectory suggests it’s a stock to watch closely.
As Tata Communications continues to innovate, its stock remains a beacon for those seeking growth in India’s dynamic market. With brokerages like Macquarie and ICICI Securities betting on its potential, the question isn’t if it will grow, but how far. Could 2300 INR by 2028 be just the start? For now, Tata Communications is a shining example of how vision and execution can drive market success.